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GoCs Twist Steepen, USDCAD Nears Bull Trigger

CANADA
  • FI: GoCs have rallied since the jobs report, sitting with a twist steepening with 2YY -3.5bps, 10YY +0.6bp.
  • The move is supported by a pulling back of the BAX rate path yet RBC viewed the jobs data as strengthening the BoC’s case for another 50bp hike in June.
  • FX: USDCAD climbed 30pips after US and Canada jobs and has since increased another 20pips, leaving it +0.4% at 1.2884 as CAD underperforms other majors in a reversal of yesterday.
  • Resistance eyed at the bull trigger of 1.2914 (May 2).

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