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CAD Outperforms With USD and WTI Strength

CANADA
  • CAD outperforms on crosses, as a function of both USD strength and the step higher in WTI on Russia and Saudi Arabia output cut extensions.
  • USDCAD trades around 1.361, sustaining a 25-30 pip decline on the oil headlines to further bring it off earlier highs of 1.367 in London hours that saw the pair clear resistance around 1.364 in recent weeks to punch through a key 1.3655 (May 26 high) and open 1.3724 (trendline resistance drawn from Oct 13, 2022 high).
  • There is some sizeable option expiry at the upcoming NY cut, nearby with $580m at 1.3600 and $373m at 1.3625, plus further out $1.093B at 1.3750 and $769m at 1.3545.

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