As the USDCAD pushes through 1.0950, the Canadian junior finance minister said that the weakening of the CAD offered “remarkable opportunities,” which is benefiting the manufacturing sector. Secretary of State for Finance Kevin Sorenson, said that “I think…the manufacturing sector is quite pleased that we have a dollar that the value is down from what it was a number a months ago.” While this is true, the economic data out of Canada is mediocre, and its number one export, crude, has dropped substantially from 2013 highs.
“We’re an exporting country and as you know by far the majority of everything we manufacture here and everything we grow here we export and so there’s opportunity,” said Sorenson. The Canadian dollar hit a four year low against the US dollar, and there is no intention of any intervention, which is reserved for extreme cases of volatility. Sorenson continued from a statement in Toronto, “really, where the dollar is positioned, for us will mean very little. It will more be how can we keep taxes low, how can we continue to support the economy.”
The USDCAD has pulls back from the 1.0957 high, and price action teeters where the most significant resistance point is at 1.0944. Look for a pullback to 1.0918/25 intraday, while there is likely longs clustered around 1.0900. The trend still remains strong, but price action may look to take a rest in the next session or two.