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CAD Seeing Out Session Near Top Of G10 FX, CPI In CAD Spotlight Tomorrow

CANADA
  • USDCAD at ~1.319 is off session lows of 1.3161 but still holds a 0.2% drop on the day after Friday’s trip back above 1.32.
  • CAD sits just off CHF for top of the G10 FX pack on the day with a boost from fixed income underperformance (GoC 2YY +2bp vs -3.5bp for Tsys) and equities pushing higher, despite oil ultimately continuing Friday’s larger slide lower.
  • That jump in USDCAD on Friday, also boosted by the U.Mich beat, was seen from technicals as a corrective bounce moving nearer to resistance at 1.3251 (20-day EMA), whilst there is more room to the downside with support at 1.3084 (1.618 proj of Apr 28–May 8–May 26 price swing).
  • Option expiries for the NY cut 90 mins after CAD CPI and US retail sales are skewed higher though, for those with reasonable volumes at nearby strikes, with $525m at 1.3240 and less so the $200m at 1.3200.

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