Canadian finance minister Flaherty says temporary stimulus measures will ed as scheduled, that the budget will return to balance in the medium-term and that there will be no tax hikes along the way.
If the US government could say that, EUR/USD would drop 15 handles in a blink of an eye, but sadly it cannot, and thus us getting used to its new neighborhood just north of 1.5000.
USD/CAD is consolidating gains in the 1.0525 area as traders mull the risk of the BOC selling Loonies to drive up Canadian inflation toward its 2.0% target.
