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Relative Resilience To Lower Oil

CANADA

Market Snapshot Ahead Of Canada/US Data

  • FI: GoCs outperform Treasuries on the day, with 2YY down 2bps, 5-10YY down ~4bps and 30YY -~2bps.
  • The modest bull flattening sees 2s10s at new lows of +10bps whilst 5s30s continues to be flat/fractionally inverted, where it has been for most of this week.
  • FX: USDCAD has pulled back from session highs but remains up 0.2% at 1.2505 on a combination of dollar strength and oil weakness, although CAD fares better than other commodity exporter majors.
  • Yesterday saw a break of key support in USDCAD at 1.2451 (Jan 19 low) with support now seen at its low of 1.2430 after which it could open a 1.23 handle.

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