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Overnight Implied Vols Bid Ahead of BoC Decision

CAD
  • USD/CAD sits just below the YTD high printed overnight at 1.3774, with overnight vols suitably bid ahead of the BoC decision later today (on which, our full preview is found here: https://roar-assets-auto.rbl.ms/files/51694/BOCPre... ).
  • The pair made a convincing break higher Tuesday, taking out the bull trigger at the Dec 16 high of 1.3705, and clears the way for a test on the 1.3800 Fibonacci retracement and above. An ATM straddle is priced to break-even on a ~65 pip swing in the pair today, with implied vols showing north of 12 points for the first time since mid-Feb today.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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