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USDCAD Continues To Roll Over As GoC Yields Climb

CANADA
  • USDCAD tests yesterday’s and overnight joint lows of 1.3486, coming as GoCs extend earlier underperformance to Tsys and WTI climbs, rather than a more meaningful recovery in the S&P E-mini.
  • CAD outperforms all other majors post holiday thinned trade.
  • 2Y GoC yields now +12.4bps (Tsys +6.7bps) and notably 10YY +11.8bps (Tsys +2.3bps), with no obvious headlines for the latest move.
  • The pair has already fallen ~60 pips off earlier highs but there is still some leeway for more notable support at the 1.3404 low post-CPI on May 16.


USDCADSource: Bloomberg

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