Inflation mandate review "looks forward"
The Canada finance minister has a say in whether the inflation mandate of 2% is appropriate for the Bank of Canada. When asked, Oliver commented that the "country has been well served" by its 2% inflation mandate. He did comment however, it still is a forward looking mandate. He did hedge that comment by saying the "bar for change was high".
On oil price impact, he said that "Oil price the devastating impact"
Technically, the USDCAD has made another run to the downside today below the 1.1988-1.2000 level (see yellow area in the chart above). The last few times have seen quick rebounds. This break has spent more time below the level suggesting perhaps there is more downside bias. The bullish caveat is that the low took out the previous low by a few pips and rebounded. So there is that reluctance to venture too far down. Nevertheless, look for sellers against the 1.2000 with stops above.
