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USDCAD Edges Off Highs With Recovery In Banks, CAD Still Underperforms

CANADA
  • USDCAD has pulled back ~15 pips off session highs to 1.3615 (-0.1%) with a recovery in pre-market trading for US banks.
  • Despite the dip, the loonie again underperforms most G10 FX peers amidst USD weakness and further downward pressure on WTI at sub-$70.
  • The pair remains close to yesterday’s high of 1.3638 after which lies a key resistance at 1.3668 (Apr 28 high), whilst to the downside sits 1.3528 (May 2 low).
  • There is significant option expiry for Friday’s NY cut with 3.32bn at 1.3685/1.3695 but plenty of event risk before then, starting with ADP in just under 30mins.

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