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CAD Outright Outperformance Fades With WTI Slide, CPI and Kozicki Eyed Tomorrow

CANADA
  • USDCAD has been drifting towards session lows of 1.3472 (1.3481 at typing) but this time it’s more closely tied to a broader USD downleg rather than outright CAD outperformance as earlier in the session.
  • The full reversal of what had been further solid WTI gains has taken the edge off CAD on crosses, with it now sitting just behind EUR and SEK for gains on the day.
  • USDCAD has cleared a key support at 1.3490 (Sep 1 high) but has struggled to push beyond the 50-day EMA at 1.3474. Resumed progress could ultimately open 1.3352 (Aug 7 low).
  • Tomorrow sees CAD CPI after today’s surprisingly strong, albeit energy-led, input price pressures. It will then be followed by BoC Dep Gov Kozicki speaking on the impact of household differences on mon pol.

Source: Bloomberg

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