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CAD Mid-Pack Ahead Of Labour Report

CANADA
  • USDCAD has dropped back to around 1.367 after yesterday’s fresh recent high of 1.3695 to extend a series of steps higher over the past two weeks.
  • It nears trend-line resistance at 1.3722 (drawn from Oct 13, 2022 high) whilst support is seen at 1.3547 (20-day EMA). $700m of option expiry at 1.3600 for today's NY cut.
  • CAD sits in the middle of the G10 FX pack although underperforms high beta peers, with a decent intraday recovery in WTI offset by the S&P e-mini near session lows.
  • The jobs report is in focus ahead – see our thoughts from yesterday here, although consensus has since ticked up from 17.5k to 20k.

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