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USDCAD Continues Drift Higher With Equities Under Pressure

CANADA
  • USDCAD has pushed back above 1.35 with some more conviction this time after a brief test overnight, having last been there on Mon the day before strong CAD CPI.
  • The pair continues its increase seen after yesterday’s FOMC hawkish dot plot with equity futures still under pressure.
  • The recent high of 1.3515 lifted nearer resistance at 1.3527 (20-day EMA) with gains deemed corrective and support at 1.3381 (Sep 19 low).
  • The diplomatic row with India continues to escalate with India suspending visa issuance to Canadian citizens.
  • Ahead, employment insurance and new housing prices lead some lower tier Canadian data, with more focus on the US docket including initial jobless claims covering a payrolls reference week.

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