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USDCAD Dips Ahead Of CPI, BOC

CANADA
  • USDCAD touches a session low of 1.2986, -0.25% on the day and right at the low end of yesterday’s range ahead of US CPI shortly and the BoC decision at 1000ET with a 75bp hike widely expected.
  • Reasonable option expiry for today’s cut-off with $1.57B at 1.3000 but could offer little traction if there are surprises in either direction.
  • Trend conditions are seen as bullish from a technical perspective, with a bull trigger seen at 1.3084 (Jul 5 high), clearance of which could open 1.3113 (Nov 23, 2020 high). On the flip side, a short-term pullback could test support at 1.2936 (Jul 8 low) with the 20-day EMA just below that.

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