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GoCs Bear Steepen, USDCAD Flat  Ahead Of Labour Report

CANADA
  • FI: GoCs bear flatten with 2YY +5.5bps and 10YY +3bps, broadly tracking Treasuries with still relatively little obvious impact from yesterday’s Budget. All major tenors except the 5Y clear new cycle highs.
  • FX: USDCAD trades in a tight range despite USD strength, little changed on the day at 1.2589 after firming 0.8% in the past two days. Resistance eyed at 1.2612 (Mar 28 high) whilst support at 1.2479 (Apr 6 low).
  • Data: Labour report for March - 0830ET. Consensus expects a milder but still solid report after a stellar February. Wide range within consensus but the median has the u/e rate dipping a tenth to 5.4% on unchanged participation after sliding 1pt in Feb. That would leave it equal to pre-pandemic lows. This is the last main release before the BOC on Wed.

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