It's notable that CAD has participated less in the gains against the U.S. dollar than most currencies have seen.

The Australian dollar has been dragged down by the New Zealand dollar. Both currencies may well go through several months of under-performance.

European markets are set to follow the outlook for the dollar. The dollar is getting stronger and European currencies are weakening and that is probably taking European markets higher again.

We saw consolidation of the gains in the Canadian dollar from last Friday.

The Australian dollar has moved up against all other currencies quite sharply. The market has been wrong-footed by the Australian dollar, as has happened on several occasions this year. You get a few strong numbers in Australia and the market has to turn around again.

We've seen markets get ahead of themselves in bonds and in currencies as well. There are signs that markets have now gotten too optimistic about not only the size of the U.S. recovery, but the speed; our medium-term forecast is still very much of euro strength and dollar weakness.