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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CANADA
- USDCAD is back within just a few pips of yesterday’s low of 1.3463, firmly in oversold territory for the first time since Dec 2023 and before that last meaningfully in May 2021 (14-day RSI).
- Unlike yesterday’s clear CAD outperformance, today it’s in line with other high beta peers.
- Yesterday saw the latest clearance of a support to open a notable 1.3420 (Mar 8 low) whilst resistance isn't seen until 1.3617 (Aug 23 high)
- The further decline comes against a backdrop of historically large CAD net shorts according in CFTC futures at least. Net shorts were trimmed to 52% of OI as of Aug 20 vs 55.6% the week prior, with a ~160pip decline in USDCAD since then possibly seeing stop outs along the way.
- Near-term local releases are limited, with the payrolls report for June on Thu before a more important Q2 GDP report on Fri - still broadly three consecutive 25bp cuts priced to year-end.
- There has been further political fallout from Canada yesterday announcing 100% tariffs on Chinese EVs and 25% tariffs on imported steel and aluminium, with China’s Ministry of Commerce urging a reversal.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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