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GoCs Outperform & USDCAD Remaining Higher Post Data, Putin

CANADA
  • US PPI beating, Canadian cap util falling by less than expected and oil briefly bouncing on Putin headlines sees GoCs switch to outperforming Tsys and USDCAD spiking.
  • After swinging, 2Y GoCs sit with a -0.5bp rally (Tsys +2bp) to see the Can-US yield differential widen 6bps to -52bps.
  • USDCAD trades circa 1.365 having spiked to 1.3691 on the snap reaction to a PPI beat, fleetingly nudging above yesterday’s highs but with resistance at 1.3700 (Dec 7 high) intact. Hawkish surprises in U.Mich at 1000ET could see a stronger test of the 1.37 handle.

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