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Market Snapshot Ahead Of CAD GDP and US ECI

CANADA
  • GoCs trade 3bp to 8bp richer across benchmark tenors as they modestly underperform Treasuries across the curve.
  • The 2Y CAN-US yield differentials remains close to lows for the range since the spring at -39bps, whilst the 10Y diff is particularly depressed at -85bps.
  • USDCAD has mostly traded in the lower half of yesterday’s range, currently at 1.3832. The technical set-up suggests the path of least resistance is higher, with resistance at 1.3881 (Oct 27 high) and support at 1.3790 (Oct 26 low).
  • See some thoughts on CAD GDP here: https://marketnews.com/monthly-gdp-comes-into-focus-oct-31-0830et

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