April 23, 2024 14:57 GMT
USDCAD Clears Support At 20-Day EMA And Expiries Mostly Lower
CANADA
- USDCAD touching a low of 1.3656 has breached support at 1.3671 (20-day EMA) following the broader post-US PMI moves.
- It opens next support at 1.3595 (50-day EMA) even if technical trends have suggested the pullback is corrective.
- The Can-US 2Y yield differential sits 2.5bps higher on the day, at -69bps now ~9.5bps higher than the close after last week's soft CAD CPI.
- CAD underperforms peers owing to its US linkages, only outperforming USD and JPY on the day.
- Tomorrow sees Canadian retail sales and the minutes from the BoC Apr 10 decision.
- The NY cut lands between the two, with larger expiries generally grouped lower than spot: 1.3565 ($404m), 1.3570 ($402m), 1.3576 ($471m), 1.3600 ($495m), 1.3650 ($425m) and 1.3680 ($770m).
Support at 20- and 50-day EMAs (green, pink)Source: Bloomberg
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