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Risk Sentiment To Drive USDCAD With Light Dockets

CANADA
  • USDCAD briefly nudges to new session highs of 1.3304 (+0.2%) and broadly keeps to 1.329-1.330 with both the US and Canada back from Friday holidays, but maintains its post-US CPI slide.
  • Front-end GoCs trade in lockstep with Tsys leaving the Can-US 2YY differential at -52bp, where it was after the stepdown at the Oct 26 BoC.
  • Light dockets today leave broad risk sentiment in focus (although Fed VC Brainard at 1130ET), with the next major CAD event CPI on Wed (consensus for headline +0.1pt to 7.0% Y/Y but particularly wide range of 6.3-7.4).

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