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Swift Dovish Reaction To CAD CPI

CANADA
  • USDCAD clears 1.36 on the surprisingly soft CPI, especially core measures. It’s meeting resistance at the bull trigger at 1.3606 (Feb 28 high) after which lies 1.3623 (Fibo retrace of Nov 1 – Dec 27 bear leg).
  • 2Y GoC yields fall 11bps in the initial reaction, Can-US 2Y slides 10.3bps to -54bps having last closed lower in Dec’23.

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