March 25, 2022 15:46 GMT
- USDCAD has moved through newly found support at yesterday’s low of 1.2510, touching 1.2499 in the process.
- This has come following a significant sell-off in rates, and despite Eurodollars implied yields rising by more than BAX (as much as 20bps vs 15bps), with a further, smaller, boost from oil prices rising on a missile strike at an Aramco facility.
- That leaves it testing next support at 1.2499 (Jan 21 low) after which it would open the key level of 1.2451 (Jan 19 low) with a 1.23 handle from Nov 2021 lows after that.
- The pair has moved lower for 12 of the past 13 days, for a decline of -3%.
- Little impact from NY Fed’s Williams earlier. Next commentary likely of note is BOC Dep Gov Kozicki in around an hour.