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CAD Continues to Pressure New Cycle Highs

FOREX
  • CAD continued to press higher Thursday, putting USD/CAD at new cycle lows for a second consecutive session. The break of 1.2365, Mar 18 low confirms a resumption of the underlying downtrend that has been in place since March 2020. MA studies remain in a bear mode reinforcing current trend conditions, with firmer oil prices also lending a hand.
  • Having tested the level on several occasions Thursday, USD/JPY finally managed to show above the week's best levels of 109.08 before a turnaround in equity market sentiment undermined the bullish argument and dragged the pair back below Y109 ahead of the US close.
  • CAD, USD were the strongest Thursday, with AUD, SEK and NOK among the poorest performers.
  • Focus Friday turns to Japanese industrial production, Chinese PMI data for April and prelim GDPs from Germany, Italy and the Eurozone. In the US, March PCE, the MNI Chicago Business Barometer and Canadian GDP data crosses. Speakers include Fed's Kaplan.

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