Stephen Gallo at BMO said although he had been calling for a continued move higher in USD/CAD for over a month, even he admit to being somewhat surprised by yesterday’s move through 1.0550. “The pace of the move since Bernanke’s press conference has been somewhat breathtaking”. He said it naturally lends itself to the question of whether USDCAD has gotten overbought. He doesn’t believe USD/CAD is ridiculously overbought yet. He would characterize it is just starting to get slightly frothy. He bases that on a variety of factors, including IMM positioning, risk reversals and overlays of USD/CAD on key fundamental variables.