April 19, 2022 17:46 GMT
- CAD remains under pressure today with oil prices sliding and Can-US yield differentials more negative.
- BAX futures have flipped proceedings and are now lower on the day than Eurodollars in the whites but this hasn’t translated into bonds where GoCs outperform USTs (despite 2Y GoC yields touching highs since 2008).
- It sees the Can-US yield differential for 2Y within the range of the past month at -5bps but the 10Y hits new recent lows of -10bps.
- USDCAD +0.1% at 1.2624 as CAD notably underperforms other risk sensitive currencies. That said it only briefly tested initial resistance at 1.2644 earlier (Apr 18 high) before retreating, not troubling the bull trigger from last week’s high of 1.2676 (Apr 13).