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Pre CPI Snapshot

CANADA
  • The BoC may be looking to carve its own rate path, but waiting on CPI, GoCs currently track Tsys on the day, more so at the front end (2YY -2.4bps vs -2.1bps) with some mild outperformance in 5-10Y tenors (10Y -3.9bps vs -2.5bps).
  • USDCAD at 1.3374 sits in the middle of today’s and also yesterday’s wider range, with CAD lagging other risk sensitive peers. The downtrend is seen broadly remaining intact with support at 1.3302 (Apr 14 low) whilst yesterday’s 1.3420 high marks initial resistance.

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