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CAD at New Cycle Highs as Momentum Persists

FOREX
  • Currencies are mostly trading inside recent ranges, with the USD mixed as markets ponder a particularly heavy week for central banks. Ahead of Wednesday's Fed decision, 10y yields are holding toward the upper end of Friday's range, which is providing some support for the greenback, but progress is muted.
  • Commodity-tied and growth proxy currencies are outperforming, with USD/CAD hitting new multi-year lows in the European morning as momentum persists after Friday's jobs data-inspired rally.
  • AUD/NZD is trading weak, slipping through the Friday lows with little fightback as traders focus on potential M&A flow from the purchase of Tilt Renewables' Australian and New Zealand assets.
  • Focus turns to US Empire Manufacturing and Canadian housing starts/manufacturing sales numbers. Central bank speakers are few and far between, as many policymakers enter their pre-rate decision media blackout periods.

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