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CAD Leans Into USD Strength

CANADA
  • USDCAD has increased ~40pips off session lows of 1.3676 as the latest dip in the S&P e-mini now has a greater impact after earlier moving lower despite equity weakness after the labour reports were digested.
  • CAD is buoyed by oil surging further today, outperforming all majors along with NOK
  • At 1.3714, USDCAD is only slightly lower than before a hawkish Macklem yesterday, but the combination has allowed CAD to lean into broader USD strength since then.
  • The day’s high of 1.3761 forms initial resistance, after which potentially lies the cycle high and bear trigger of 1.3838 (Sep 30 high). To the downside, support is seen at the 20-day EMA of 1.3492.

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