Harper said that should the C$ rise again he would deflate it. I heard it myself.
The question remains is at what level he would do it, perhaps not at 1.10.
I like your version - McSquinty - no matter how much he aquicks he is a Liberal hence just noise to Harper's ears. What matters here is that Harper does not get much support east of Manitoba and he wants it hence he bends over backwards even when Alberta and BC protest. Election around corner?.
Anyhow that is how I see it and that is why I think it will be 1.10 and then a Whoosh as the air goes out with the use of the printing press or interest rates per George W's example.