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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
- Despite the broad dollar weakness on Monday, USDCAD has remained resilient and trades around 0.35% higher on today’s session. Sharp downward pressure on crude futures will be adding headwinds to the CAD, with WTI extending the week’s decline to around 5.5%.
- Strong support around the 1.3600 handle keeps a bull trend intact for USDCAD ahead of tomorrow’s BOC decision, where the central bank is expected to initiate monetary easing.
- While reservations remain, soft inflation & growth data make too compelling an argument for cuts. It is likely the Bank begin their easing cycle with a 25bps rate cut, but make clear that back-to-back easing is unlikely. Our full preview is here.
- With the ECB also taking place this week, we recently noted EURCAD had broken above a cluster of highs around 1.4780. Exponential moving averages are also in a bull mode position and the cross printed as high as 1.4895, a fresh 6-month high. This closely respects the downtrend line from the July 2020 highs (shown below).
- Separately, 1.3748 marks the first resistance point for USDCAD, a Fibonacci retracement level. However, a stronger resumption of gains for USDCAD would refocus attention on the bull trigger at 1.3846, the Apr 16 high.
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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