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Growing CAD Underperformance, PSAC Strike Potentially Weighing

CANADA
  • CAD sees growing underperformance on the day, as USDCAD holds onto most of its day’s increase compared to a broader retracement in DXY.
  • Latest headlines on potential disruption from the PSAC strike include grain shipments.
  • USDCAD trades at 1.3436 (+0.35%) off a high of 1.3454. It has pushed through resistance at 1.3420 (Apr 17 high) and briefly 1.3448 (Apr 13 high), with a stronger break seen opening the 20-day EMA at 1.3490.
  • The pair has increased more than 130 pips since last week’s 1.3302 low that came with it approach oversold territory, which helped trim historical undervaluation to -2% on a rolling 5Y and -4% on a rolling 10Y real effective exchange rate basis.

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