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USD/CAD Downside Should Return on Any Crude Bounce

FOREX
  • Early trade in G10 FX sees most pairs respecting yesterday's range - with the scant trade across the US yield curve preventing any further major move in the USD.
  • Stand out so far today is USD/CAD, which is working further against the Dec downleg and has printed a third session of higher highs. Moves come following the modest downtick in crude price in the post-Christmas period, with Brent prices close to $4 off the Dec26 high.
  • Nonetheless, the trend outlook remains bearish after clearing the bear trigger at 1.3480, the Dec 4 low. This leaves the next downside level at 1.3093, the Jul 14 low and a key support, which could come into play on any WTI/Brent bounceback.
  • MNI Chicago PMI marks the data highlight Friday, rounding off the year with the December read. Markets expect the headline to moderate to 50.0, down from 55.8 in November.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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