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USDCAD Clears Overnight Lows With Firmer Equities

CANADA
  • USDCAD clears overnight lows, currently 1.3725 in a pullback from Friday’s fresh cycle high of 1.3838 in a move helped by e-mini S&P moving off cycle lows.
  • The technical trend remains higher, with initial resistance at that 1.3838 after which lies a Fibo projection of 1.3896, and indeed the 2Y yield differential re-opening at -41bp after Friday’s closure continues to offer little downward momentum. Support at 1.3603 (Sep 28 low).
  • Data: Mfg surveys headline the session with PMIs (final for US) and then the US ISM.

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