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USD/CAD Downtrend Resumes

FOREX
  • CAD outstripped all others Friday, with USD/CAD resuming the 2021 downtrend on the break below 1.2468. CAD strength followed a stellar Canadian jobs report for February, in which Canada added over 3 times as many jobs as forecast, with a decent bounce across both full and part-time positions. This saw the unemployment rate shed a whole 1.2ppts to new pandemic-era lows.
  • Persistent USD strength was evident throughout Asia-Pac and European hours as US yields rallied and the Treasury Curve steepened. This saw the USD Index bounce off the weekly post-ECB lows before price action faltered into the US close, with the greenback rolling off the day's best levels ahead of the close.
  • SEK, NZD and GBP were among the poorest performers Friday, CAD, USD and NOK the strongest.
  • Focus for the coming week rests on a frenetic five days for central banks. Rate decisions are due from the US, UK, Norway, Japan, Russia, Turkey, Brazil and Indonesia among others.
  • On the data front, the Australian jobs report, Japanese CPI and US retail sales are all due.

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