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CAD Remains Under Pressure Post CPI

CANADA
  • USDCAD again nears session highs of 1.319 with the pair +0.23% on the day on a combination of some moderation in near-term core inflationary pressures and a string of stronger than expected US data.
  • The shift higher has clearly lifted the pair off oversold levels on a 14-day RSI basis and a further tilt higher could see some attention on resistance at 1.3226 (Jun 23 high) after which lies the 20-day EMA at 1.3296.
  • CAD sits towards the low end of the G10 FX pack, weighed by WTI slipping 2% and a 7.5bp widening in the negative Can-US 2Y yield spread, but still fares better than NOK and JPY.
  • The US takes centre stage tomorrow with Powell speaking in Sintra, with the next major CAD events not until the BoC surveys plus monthly GDP on Friday.

Source: Bloomberg

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