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USDCAD Declines With Intraday Risk Recovery

CANADA
  • USDCAD continues its intraday decline seen almost ever since the US cash equity open, as equities recover with the S&P 500 currently +1% and crude retraces some of its earlier losses.
  • The pair has recently touched 1.3525, down from a high 1.3604 ahead of the open that had built on prior clearance of 1.3575 in a push towards a key 1.3655 (May 26 high).
  • The decline sees the 14-day RSI dip out of overbought conditions having closed north of 70 since Aug 15.
  • Potentially helping with downward momentum ahead, there is $745m expiring at 1.3465 for tomorrow’s NY cut (solid but not particularly large).

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