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USDCAD Continues Risk Off Push Higher

CANADA
  • USDCAD has continued to climb with risk off flows after US data included a surprise shift higher in initial claims along with PacWest concerns at the fore ahead of the open.
  • Touching a high of 1.3459 (+0.6%), the pair has sharply reversed a prior bearish tone that had been focusing on support at 1.3315 (May 8 low) and instead sits close to 1.3473 (Apr 21 low) with the 1.35 handle after that.
  • With no local data to lean on (Senior Loan Officer Survey tomorrow, CPI Tue), GoCs are closely tracking Treasuries with yields down ~8bps on the day in an extension of the post US CPI rally.

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