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CAD Deteriorates as Oil Futures Curve Shifts Lower

CAD
  • USD/CAD continuing to work its way higher in recent trade, touching 1.2860, the best level since mid-August as markets narrow the gap with the near-term high at 1.2959 - key resistance going forward. This level marks the bull trigger and a break through here opens the Dec 21 2020 high at 1.2957.
  • CAD is now the poorest performing currency in G10, following oil markets lower as they continue to roll off the highs printed late last week. It's not just the front-month oil contract that seeing weakness, but the whole futures curve has deteriorated.
  • 1m CAD implied vols are now clearing 8 points on today's rally, rising toward the highest level since late Feb/early March, with solid demand for 1.29, 1.31 and even 1.3425 USD/CAD calls driving narrative.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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