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USDCAD Dips On "May Need 75bp Hike" MNI Interview

  • USDCAD hit a session low of 1.2879 after the MNI interview with former BoC adviser Ambler on the potential need for a 75bp hike on Jun 1, along with a move lower in BBDXY.
  • With the pair -0.4%, CAD is the top performer of the majors vs USD today despite some signs of moderation in the housing market.
  • Technicals: The pullback since early Friday is considered corrective as part of a bullish outlook for the pair but it could nevertheless be extended with initial support eyed at the 20-day EMA of 1.2842.
  • CFTC net specs: Latest data to May 10 showed the first net short position in CAD since late March and before that early January to avoid fighting USD strength. CPI on Wed could be a key trigger for whether we see a return to net longs ahead of the BoC on Jun 1.

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