November 10, 2022 12:53 GMT
USDCAD Bearish Threat Still Present Ahead of US CPI
- USDCAD sees a slower continuation of yesterday’s climb (CAD towards middle of majors pack on the day), rising to 1.355 vs low 1.36s just before US/Canadian jobs last week.
- Ahead of US CPI, a technical bearish threat is still seen present with support at 1.3388 (Nov 8 low), although a strong figure could easily challenge resistance at the 20-day EMA of 1.3598.
- BoC stepdown to 50bp in Oct still weighs heavily on Can-US yield differentials, with the 2YY at -51bps, 10YY -70bps.