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GoCs Reverse Open Bid and USDCAD Climbs On CPI, US Retail Sales

CANADA
  • GoC yields have pushed 2.5-3bps higher since CPI and US retail sales, building on a sell-off seen after strong housing starts, leaving them back unchanged on the day.
  • A strong control group for US retail sales and the BoCs preferred core measures coming in stronger than expected helps set the tone, but with an offset from headline missing and alternate core figures also coming in softer in three-month terms.
  • It sees CAD unable to resist USD strength with USDCAD climbing ~30 pips to a session high of 1.3226 but only back into yesterday’s early range and not testing resistance at 1.3243 (20-day EMA).

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