[Dan]

�� Long-term valuations, according to recent estimates of purchasingpower parity, show that on average CAD, while still undervalued, is much lessmisaligned than in the past, apart from NOK and CHF.

�� Overall, based on the 2009 PPP estimates, CAD is not dramatically misalignedversusthe major currencies. More pointedly, USD/CAD is about 9% undervalued, which is farfrom extreme.

�� CAD has tended to be relatively undervalued, and spent much of the current decadedigging out of that hole. However, relatively little progress was made against NOKand CHF. Watch for persistent CAD outperformance versus NOK and CHF in thenext phase of global growth, to narrow these valuation imbalances.