April 26, 2024 19:01 GMT
USDCAD Back To Pre-PCE Levels
CANADA
- USDCAD has drifted back below 1.3660 from its earlier high of 1.3696, with the latest move back to pre-PCE levels coming with a broader step lower for the USD.
- The technical trend direction just about remains higher with declines deemed corrective, but the pair is increasingly testing this having declined ~100 pips over the week.
- Support is seen at the 1.3636 touched fractionally after the PCE release (after 1.3637 overnight) before a more notable 1.3604 (50-day EMA), whilst resistance is seen at 1.3763 (Apr 22 high).
- As noted above, yield differentials have slipped a little today but still hold a solid move away from historical lows, whilst BoC pricing has shifted to closer to a 50/50 chance of a June cut.
Moving closer to the 50-day EMA (note that support level given in text is for last close)Source: Bloomberg
167 words