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CAD targets YTD highs as oil recovery.........>

FOREX
FOREX: CAD targets YTD highs as oil recovery extends
-Sitting just behind the NZD, CAD was one of the strongest performers among G10
FX Wednesday, benefiting from an extension of the recovery in WTI crude futures.
Energy prices got a decent boost on the far larger than expected drawdown in DoE
crude oil inventories (the biggest draw since 2016 and the second biggest since
1999), helping underpin commodity-tied FX across US hours. This puts USD/CAD on
course to test the YTD lows in early February at C$1.3069.
-After holding its ground for much of the European morning, the greenback faded
into US hours, returning focus to cycle lows printed Tuesday. Fed outlook
understandably remains key, with Friday's May PCE data the next key indicator.
The softening USD was countered by an even weaker JPY, which pulled back despite
a meagre global equity market performance. Month-end flows may begin to kick in
from Thursday, with some models eyeing USD selling into the close Friday.
-Regional and national German CPI figures, New Zealand business confidence data,
the third reading of Q1 US GDP and pending home sales are the data highlights
Thursday. Speeches from BoJ's Wakatabe and ECB's Nowotny are also due.

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