FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

CANADA: USDCAD Sensitive To CAD CPI Beat

CANADA
GlobalCanadaBulletMarketsForeign Exchange BulletsRegionNorth America
  • Those coming back from Columbus/Thanksgiving holidays will find that USDCAD has extended its strong run to hold clearance of 1.38, aided by today’s tailwind from heavy declines in oil prices.
  • USDCAD sits just off session highs of 1.3815 having neared latest resistance at 1.3822 (76.4% retrace of Aug 5 – Sep 25 bear leg) after which lies 1.3856 (Aug 6 high). To the downside sits 1.3696 (Oct 10 low) before 1.3622 (20-day EMA).
  • It’s at levels that if held would mark a 10th consecutive daily increase, its longest streak in over seven years. It has pushed into overbought territory again, continuing large swings having been overbought in late July and oversold in late August.
  • Latest CFTC positioning showed a further build in CAD net shorts last week to 40% of open interest, for futures at least. That’s a fifth consecutive weekly increase from 27% in early September as it shifts back closer to historically large net shorts of 56% in late July/mid-August.
  • This technical and positioning backdrop could leave CAD more sensitive to an upside surprise from today’s CPI release. MNI Preview.
Source: Bloomberg
182 words

To read the full story

Close

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.
  • Those coming back from Columbus/Thanksgiving holidays will find that USDCAD has extended its strong run to hold clearance of 1.38, aided by today’s tailwind from heavy declines in oil prices.
  • USDCAD sits just off session highs of 1.3815 having neared latest resistance at 1.3822 (76.4% retrace of Aug 5 – Sep 25 bear leg) after which lies 1.3856 (Aug 6 high). To the downside sits 1.3696 (Oct 10 low) before 1.3622 (20-day EMA).
  • It’s at levels that if held would mark a 10th consecutive daily increase, its longest streak in over seven years. It has pushed into overbought territory again, continuing large swings having been overbought in late July and oversold in late August.
  • Latest CFTC positioning showed a further build in CAD net shorts last week to 40% of open interest, for futures at least. That’s a fifth consecutive weekly increase from 27% in early September as it shifts back closer to historically large net shorts of 56% in late July/mid-August.
  • This technical and positioning backdrop could leave CAD more sensitive to an upside surprise from today’s CPI release. MNI Preview.
Source: Bloomberg