Technically, it could run a little more. I don't think we're going to have a massive shakeout as we had in dollar/yen.
The headline was clearly higher than expected. But beyond that, it doesn't really add anything to what we know already.
There is a strong link between commodities and the Canadian currency. If we see declines in commodities prices, it will put some pressure on the Canadian dollar.
The yen is still soft across the board and I think interest rate differentials are still the driver there.
His speech was hawkish in the sense that there would be more interest rate increases. But again, there's something for everybody in his speech, including dollar bears.
It was under pressure earlier on drifting commodities prices, particularly natural gas. Some soft numbers from the purchasing managers index helped give it a bit of a shove lower.
Our clients remained pretty active hedging last year. Since they had so many hedge contracts in place, their credit lines were full, and they wanted to do more but couldn't.
The bank may start to soft-pedal its need for more rate increases down the road. So the Canadian dollar is coming down.
The markets cast a bit of doubt about how much the central bank will go in this rate-hike cycle.