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CANADA: USDCAD Clears 1.36 For First Time Since Powell’s Jackson Hole Speech

CANADA
  • USDCAD has cleared 1.36 for the first time since late Aug 22/early Aug 23, i.e. before Powell’s Jackson Hole address, touching 1.3610.
  • It comes with CAD sitting more clearly at the bottom of the G10 FX pack on the day.
  • Macklem’s comments didn’t offer much new from last week, and if anything Can-US yield differentials have lifted a touch (2Y +2bp at -62.5bps) after Macklem didn’t appear overly concerned by last week’s latest 0.2pp increase in the unemployment rate.
  • Instead, oil futures under pressure, highlighted by Brent falling below $70/bbl for the first time since Dec 2021, and equities reversing earlier gains plus technical factors are at play.
  • USDCAD has cleared resistance at 1.3582 (Sep 6 high) with sights increasingly set on 1.3635 (50-day EMA).
Source: Bloomberg

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