June 25, 2024 12:38 GMT
Large FI Reaction To CAD CPI Beat, USDCAD Retraces Almost Half The Initial Drop
CANADA
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- 2Y GoC yields climb 10.4bps on the stronger than expected CPI report.
- Can-US 2Y yield differential jumps from -82.5bps to -73bps, at pre-Jun BoC levels.
- BoC-dated OIS tentatively shows ~10bp of cuts for the July meeting vs 15bp prior.
- USDCAD touches a snap low of 1.3626 but has since lifted to ~1.365 for only a small decline on the day. It didn’t trouble a key support at 1.3590 (May 16 low).
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