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USDCAD Breaches Key Bull Trigger

CANADA
  • USD strength helps push USDCAD up +0.75% at 1.2975 as it clears a bull trigger at 1.2964 (Dec 20, 2021 high)
  • A clear break here would be seen as an important medium-term bullish technical development, next opening 1.3029 (Nov 25, 2020 high).
  • As earlier, tight Can-US yield differentials (2Y +1bp, 10Y -3bp) helps CAD relatively outperform other majors despite the slide in oil prices.

Source: Bloomberg

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