May 24, 2024 16:32 GMT
USDCAD Fully Unwinds US PMI Lift
CANADA
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- USDCAD is extending an already sizeable push lower in a move that’s fully reversed the gain on yesterday’s US PMI beat.
- It’s aided by the day’s uplift in equity and WTI futures along with a small rise in Can-US yield differentials to chip away at the slide since soft core CPI trends in Tuesday’s release.
- It has touched 1.3654, a shift away from yesterday’s high of 1.3744 which stopped just short of 1.3748 (Fibo retracement of Apr 16-May 16 bear leg) before the more notable 1.3785 (Apr 30 high).
- The decline has slowed after some lingering support at 1.3669 (20-day EMA), but having now cleared this, next support appears to be the bear trigger at 1.3590 (May 16 low).
- Ahead, holiday-thinned trade sees light option expiry for Monday’s NY cut ($554m at 1.3670 and $513m at 1.3710). Tuesday offers input cost inflation with main local data focus Q1 GDP on Fri, but also with non-trivial spillover likely from US GDP (Thu) and PCE (Fri).
Source: Bloomberg
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