January 18, 2023 20:11 GMT
USDCAD Climbs With Risk-Off, But Still Lower Since Last BoC
- USDCAD has continued to see upward momentum through the second half of the session with e-mini S&P still hovering close to session lows, currently at 1.349 (+0.75%).
- CAD sits bottom of the majors on the day, closely followed by other risk-sensitive peers in AUD and NOK.
- The ~140 pip increase off overnight lows has pushed the pair close to resistance at the 50-day EMA of 1.3502 in a sharp reversal of the short-term bearish threat previously seen. Continued upside could open 1.3665 (Jan 6 high).
- However, from a macro perspective ahead of next week’s BoC decision, the pair still trades more than 1% lower than the circa 1.365 heading into the last decision, helped by the strength in the latest labour market report.