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USDCAD Continues Downward Momentum With Break Of Second Support

CANADA
  • USDCAD touches new session lows of 1.3337 in continued downward momentum after US CPI and relatively dovish Fedspeak, with CAD notably underperforming other majors due to its proximity (-1.4% on the day).
  • It’s cleared both 1.3388 (Nov 8 low) and, where saw stronger support, 1.3353 (50% retrace of Aug 11-Oct 13 rally) to potentially open a 1.32 handle.
  • Still have Daly (’24) plus Mester and George (both ’22) from the Fed, which could provide scope for some retracement of the day’s slide if opt for it’s only one month of downside surprise argument, along with BoC’s Macklem at 1155ET.

Source: Bloomberg

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