July 21, 2022 16:48 GMT
- USDCAD is back to nearly unchanged at 1.2883 with latest risk-on helping push the pair lower after whipsawing with the ECB’s front-loaded 50bp hike and weak US data for ultimately a -0.3% drop since then.
- There have been significant two-sided swings since last week’s BoC with a range of 1.2855-1.3224, and there are further potential drivers with Canadian retail sales and the preliminary US S&P Global PMI tomorrow.
- Whilst there was little clear impact from the Philly Fed miss amidst the ECB announcement and presser, the weak Leading Index was behind a gyration later on. There will likely be greater sensitivity to the PMI, with a beat and the boost it would have for risk sentiment possibly required to take the pair much lower with the 50-day EMA at 1.2859.
USDCAD Open To Large SwingsSource: Bloomberg