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USDCAD Clears 20-day EMA Support

CANADA
  • USDCAD has extended its decline after the soft ULC print, touching a low of 1.3535 and clearing support at the 20-day EMA of 1.3542 in the process, where it currently sits.
  • A more concerted push lower could open 1.3485 (May 23 low).
  • The rally in Treasuries sees some further GoC underperformance open up with 2YY +0.5bps vs -3.5bps for Tsys, narrowing the Can-US spread to just -15bps.
  • CAD only lags AUD and GBP on the day, but equally it only slightly outperforms CHF and JPY as equities pushing lower weigh on the loonie.

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