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USDCAD Drifts Lower With Higher Equities

CANADA
  • USDCAD has touched a new session low of 1.3585 as the S&P e-mini sits +0.4%, with the pair pulling back more strongly from a recent return to overbought conditions.
  • WTI holding modest losses on the day helps see CAD underperform Antipodeans plus the JPY after hawkish Ueda comments, otherwise it outperforms.
  • Support is intact at 1.356 (20-day EMA) before 1.3490 (Sep 1 low), whilst resistance remains at 1.3695 (Sep 7 high).
  • It’s a particularly quiet start to the week, which could give more sway to option expiry with an otherwise not hugely notable $477m at 1.3600 and $293m at 1.3660, the heaviest for today’s NY cut.

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