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USDCAD Drop Has Continued But Still Some Way Off Support

CANADA
  • USDCAD has seen a sizeable decline today as part of the broad USD weakness after softer than expected US CPI, with CAD unsurprisingly underperforming peers against that backdrop.
  • At 1.3713, the pair is close to latest lows of 1.3702 to push back to levels from early last week. It hasn’t yet troubled support at 1.3669 (50-day EMA) after which lies 1.3629 (Nov 6 low).
  • Tomorrow sees finalized wholesale and manufacturing sales plus existing home sales on the CAD side, but we suspect a solid US docket including retail sales and PPI is more likely to set the tone.

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