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USDCAD Extends To New Lows, Eyeing Second Support Of The Day

CANADA
  • USDCAD has extended to new recent lows of 1.2455, continuing through a largely uneventful US PPI. It’s down -0.4% today and -1.5% this week.
  • It cleared the first support at 1.2493 (Nov 16 low) in early trading, leaving next support identified at 1.2448 (76.4% retracement of the Oct-Dec rally) after which it could open 1.2387 (Nov 10 low).
  • This comes as part of broader USD weakness seen today, with a modestly larger decline against the loonie than the basket despite softer oil prices.
  • Short-term focus is USD risk from various Fed speakers including Brainard starting 1500ET.

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