USD/CAD is at the lows of the week at 0.9915.
The looming question that continues to hang over CAD is whether the government will allow the takeovers of Nexen and Progress Energy by Chinese and Malaysian state-owned funds.
The CEO of Petronas is in WSJ saying he remains confident of a deal and the government natural resources minister is on the wires saying the country is open for business.
Currently, Progress is trading 8.5% below the takeover price and Nexen is at a 13.7% discount so the market isn’t convinced.
Still, I don’t see how the deals don’t get done. Opposition politicians aren’t making any headlines about fighting off the takeovers. Even the media seems to be on board — this was the cover of Canada’s biggest business magazine last month:
But until there is some certain, USD/CAD will remain stuck in the doldrums.