May 11, 2022 14:16 GMT
- USDCAD sits lower having whipsawed with the US CPI release, touching both session highs 1.3039 and lows 1.2925 (currently 1.2948, -0.6%).
- CAD has been supported by a return to positive Can-US yield differentials with 4bps for both 2Y and 10Y (higher end of past three months) although they have been trimmed after CPI.
- That doesn’t help performance relative to other risk sensitive majors though, with CAD lagging notably.
- Having moved beyond the expiry cutoff, the closest having been 1.9B at 1.2950, near-term support is eyed at 1.2914 (May 2 high) after which it could open 1.2814 (May 6 low). Resistance remains yesterday’s high of 1.3052 after which it opens late 2020 levels.