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GoCs Bid, USDCAD Struggles To Break Firm Resistance

CANADA
  • GoC have pared some of the gains but yields still sit 5.5-6bps lower since monthly GDP data (softer than expected April print but decent May advance) and US PCE.
  • It further outperforms Tsys since the release to extend the move on the day, with 2YY -2.6bps vs -0.8bps for Tsys.

  • USDCAD meanwhile spiked higher to 1.3284 where it again couldn’t materially exceed firm resistance at the 20-day EMA of 1.3280 after yesterday’s high of 1.3286. Currently ~10 pips off this. Clearance could open 1.3355 (Jun 15 high).

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