Dow Jones - Euro went for a bit of a scoot this morning on the back of the Lehman news. The Bank of Canada's decision on Tuesday to leave interest rates steady has not ushered in a new period of strength for the Canadian currency, with many market players taking the view the U.S. Federal Reserve is likely to move more aggressively on rates than its Canadian counterpart. Even though the Bank of Canada left rates on hold, it doesn't feel as if (the U.S. dollar) wants to go much lower. I think the risk is that once the Fed starts to tighten, they will start to tighten more aggressively than anybody else.
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