May 21, 2024 18:55 GMT
CAD Bottom Of The G10 FX Pack On Soft Core CPI Trends
CANADA
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- USDCAD at 1.3654 is within earlier highs of 1.3675 seen on the short-lived hawkish reaction to the Fed’s Waller which built on the shift higher after soft core CPI trends released just 30mins earlier.
- Those CPI trends sees CAD bottom of the G10 FX pack on the day after BoC-dated OIS shifted from ~11bp of cuts for the Jun 5 decision to 15-16bps. It’s closely followed by the NZD ahead of the upcoming RBNZ decision.
- There’s limited notable data releases between now and Jun 5 barring Q1 GDP on May 31 and labour productivity on Jun 5 itself.
- USDCAD cleared resistance at 1.3660 (20-day EMA) to open 1.3785 (Apr 30 high).
- EURCAD meanwhile hit a high of 1.4835, pushing through recent highs of 1.4822 seen after clearing a cluster of highs in the past six months around 1.4780. Moving averages in a bull mode position, whilst a key resistance is 1.5045 (Nov 21, 2023 high).
EURCAD extends its more notable trend higherSource: Bloomberg
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