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Tomorrow’s USDCAD Option Expiry Sits Near Bull Trigger

CANADA
  • USDCAD has kept to narrow ranges ahead of the FOMC decision, and currently at 1.3765 has pulled back only slightly from yesterday’s high of 1.3785 in a continuation of post US ECI moves.
  • It marked another push closer to resistance at 1.3804 (Apr 9 high) in apparent confirmation of the bullish trend structure. After that sits the bull trigger at 1.3846 (Apr 16 high) whilst to the downside lies support at 1.3632 (Apr 29 low).
  • After very light option expiry at today’s earlier NY cut, tomorrow sees a reasonable $975m at 1.3850 but otherwise is also light.
  • Can-US yield differentials trade between unchanged to 0.5bp higher on the day across 2-10Y tenors, with the 2Y at -68.5bps and 10Y at -86.5bps.

Source: Bloomberg

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  • USDCAD has kept to narrow ranges ahead of the FOMC decision, and currently at 1.3765 has pulled back only slightly from yesterday’s high of 1.3785 in a continuation of post US ECI moves.
  • It marked another push closer to resistance at 1.3804 (Apr 9 high) in apparent confirmation of the bullish trend structure. After that sits the bull trigger at 1.3846 (Apr 16 high) whilst to the downside lies support at 1.3632 (Apr 29 low).
  • After very light option expiry at today’s earlier NY cut, tomorrow sees a reasonable $975m at 1.3850 but otherwise is also light.
  • Can-US yield differentials trade between unchanged to 0.5bp higher on the day across 2-10Y tenors, with the 2Y at -68.5bps and 10Y at -86.5bps.

Source: Bloomberg