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USDCAD Continues Uptrend, Macklem Late On

  • USDCAD extends to session highs of 1.3882 with dollar strength bolstered by U.Mich beating across the board and Fedspeak noting the disappointing but not surprising and worrying aspects of CPI report.
  • Currently 1.387, it's seen little pullback from a most recent dip in the USD with an accelerating decline in oil offsetting.
  • It remains well within yesterday’s wide range which sets both initial resistance at the post-CPI high of 1.3977 and support at 1.3707/1.3704 today. The technical uptrend is still seen intact, supported by fundamentals such as a re-widening in negative Can-US yield differentials (2Y diff -40bps from -20bp pre-CPI).
  • Fed Gov Waller still to come at 1215ET before BoC’s Macklem at the IMF at 1600ET.

Source: Bloomberg

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