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USDCAD Dips Ahead of Canada Day

CANADA
  • USDCAD steps off session lows with a small pullback in the earlier equity rally but the pair is still -0.2% at 1.2870 as weak Canadian GDP for May is seen as unlikely changing the BoC’s tune.
  • A strong run higher earlier in the session saw clearance of 1.2917 (Jun 27 high) with 1.2933, supporting the short-term bullish signal from Tuesday’s doji pattern and potentially opening 1.3017 (Jun 23 high).
  • It has been reversed though, partly on a return to more supportive front-end Can-US yield differentials with Treasuries increasingly outperforming GoCs following a core PCE miss and weak consumer spending.
  • Tomorrow sees US ISM Mfg with lower liquidity for Canada Day before important CAD drivers with the BoC’s BOS/CSCE surveys on Mon and labour report on Fri ahead of the BoC on Jul 13.
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  • USDCAD steps off session lows with a small pullback in the earlier equity rally but the pair is still -0.2% at 1.2870 as weak Canadian GDP for May is seen as unlikely changing the BoC’s tune.
  • A strong run higher earlier in the session saw clearance of 1.2917 (Jun 27 high) with 1.2933, supporting the short-term bullish signal from Tuesday’s doji pattern and potentially opening 1.3017 (Jun 23 high).
  • It has been reversed though, partly on a return to more supportive front-end Can-US yield differentials with Treasuries increasingly outperforming GoCs following a core PCE miss and weak consumer spending.
  • Tomorrow sees US ISM Mfg with lower liquidity for Canada Day before important CAD drivers with the BoC’s BOS/CSCE surveys on Mon and labour report on Fri ahead of the BoC on Jul 13.