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Tuesday, July 11, 2006

USD/CAD: Interest Rate Effect

Equity markets were down overnight, and there is a lot of speculation surfacing about the possibility that the Bank of Japan will be hiking rates this week. Odds of such a move were lifted yesterday, with news that growth in bank lending had its biggest jump in over ten years. This rate-rising scenario may not, however, be a negative for the global stock markets, as the possibility exists that investors will interpret such a development as proof that Japan's recovery is for real. Read More....