Free Trial

USDCAD Further Below Support With Equity Gains, But CAD Lags Peers

CANADA
  • USDCAD has pushed to new session lows of 1.346, pushing more firmly through support at 1.3495 (50-day EMA).
  • Next support is seen at 1.3441 (Feb 22 low) after which lies a key short-term 1.3359 (Jan 31 low).
  • The Can-US 2Y differential has increased 10bps since shortly before the text of Powell’s testimony yesterday, of which a little over 7bps has come since the BoC decision.
  • Nevertheless, further declines for the USD index today (DXY -0.5%) weighs on CAD against crosses, joint bottom of the G10 FX when looking beyond the USD.
  • Tomorrow sees employment reports for February in both the US and Canada, eyed to get a better sense of underlying trends after January distortions.

Source: Bloomberg

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.