September 03, 2024 14:59 GMT
CANADA: USDCAD Sees Firm Shift Away From Oversold, BoC Comes Into Focus
CANADA
- USDCAD at ~1.3550 holds the bulk of its climb to 1.3562 today owing to broader risk-off flows.
- The pair more firmly moves away from oversold territory having lifted more than 100 pips from last week’s low of 1.3441.
- That low marks initial support after which lies 1.3420 (Mar 8 low) but it has stepped closer to resistance at 1.3594 (20-day EMA).
- CAD outperforms other high beta peers amidst the risk-off, although did receive a marginal helping hand from the increase in the S&P Global mfg PMI which included the steepest increase in output charges for nine months.
- Tomorrow sees some heavy option expiry by recent standards with $1.08bn at 1.3515.
- The BoC decision also lands at 0945ET with a widely expected third consecutive cut and greater attention on any rate path clues. Preview: https://media.marketnews.com/BOC_Preview_Sep2024_931b755129.pdf
- It is however closely followed by US JOLTS just 15mins later and with US and Canadian jobs reports eyed on Friday.
155 words