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USD/CAD Rally Moderates, Despite Soft GDP

CAD
  • CAD remains weaker against most others in G10, with losses extending after the slower-than-expected Canadian GDP release earlier today. Quarterly GDP was flat at 0.0% on an annualized basis, falling well short of forecasts of +1.6%. Additionally, the Q3 release was revised lower to 2.3% from 2.9%.
  • USDCAD rallied last week and bulls remain in the driver’s seat for now. Sights are on the bull trigger at 1.3705, the Dec 16 high. A clear break of this hurdle would strengthen bullish conditions and pave the way for a test and break of the 1.3800 handle.
  • On the downside, the support to watch lies at the 50-day EMA. It intersects at 1.3458 and a clear break would be seen as a short-term bearish development.
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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