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CAD and GoCs Firmer

CANADA
  • FX: USDCAD trades -0.28% lower this morning, underperforming BBDXY -0.15% with oil higher on the day. It sits at the bottom end of the recent range at 1.2684 but holds above support at 1.2636 (Feb 10 low). While this level holds, a positive outlook remains intact following the recent recovery from 1.2451 (Jan 19 low).
  • FI: GoCs open firmer, with yields down ~1bp across the curve in a broadly similar move to USTs in absence of material idiosyncratic factors so far. Canadian CPI and a heavy US docket could change this.
  • News recap: Canadian authorities say never-before-used emergency powers will now allow them to establish “no-go” zones in Ottawa, where protesters against pandemic restrictions remained defiant in the face of a tightening crackdown – Washington Post
  • Historically tight housing supply saw record price growth in January, at both 2.9% M/M and 28% Y/Y with data going back to 2005.

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