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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CANADA
- USDCAD is sitting just off session lows of 1.3245 (-0.25%) amidst a combination of crude oil near highs and the S&P e-mini holding most of the day’s gains.
- Those factors help CAD sit solidly mid-pack despite the USD index drifting lower on the day ahead of both US CPI and then the BoC decision (+19bp priced) - preview found here.
- A realization of a 25bp hike should initially provide support for CAD, but if guidance fails to live up to the hawkish rate path already priced, it could easily see the loonie come under pressure again.
- Technicals suggest a bearish engulfing candle for USDCAD is still in play. It offers scope for a continuation towards a key support at 1.3203 (Jul 4 low) although stronger CPI or a dovish BoC could see a push closer to resistance at 1.3386 (50% of May-Jun downleg)/1.3387 (Jul 7 high).
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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