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USDCAD Back Below Pre-Donbas Shelling Levels

CANADA
  • USDCAD has dipped to 1.2684, below where it was overnight prior to spiking on Donbas shelling headlines.
  • Still well within the post-BOC/FOMC range, it doesn’t trouble key resistance of 1.2797 (Jan 28 high) or for now key short-term support of 1.2636 (Feb 10 low).
  • Yesterday’s CPI didn’t have much impact despite the beat. We are yet to see an outright call from analysts for a larger than 25bp hike from the BOC on March 2 although GS have called for a steeper path with 6 hikes in 2022.

Source: Bloomberg

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