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CAD Outperforms, Aided By WTI Recovery

  • WTI rebounding back towards overnight highs has provided a recent boost for CAD, which tops G10 FX today narrowly ahead of the CHF, with CAD also benefiting from broader USD strength on the day in an extension of post-payrolls gains.
  • USDCAD at 1.357 (-0.1%) is off earlier lows of 1.3550 and Friday’s 1.3551, as part of a downtrend with support seen at 1.3480 (Dec 4 low) after which lies 1.3417 (Sep 29 low).
  • 2Y GoCs have outperformed Tsys since the 2Y GoC auction but still underperform solidly on the day, narrowing the Can-US differential 3bps to -54bps.
  • The USD leg is likely the main driver over the next two days with US CPI (Tue) and then the FOMC decision (Wed).

Source: Bloomberg

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