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USDCAD Gravitating Towards 1.34 Ahead of CPI, Public Wage Talks

CANADA
  • USDCAD has pulled back from session highs of 1.342 to hover around 1.34 as is struggles to comfortably clear resistance at 1.3407 (Apr 4 low).
  • Tomorrow, CAD CPI at 0830ET headlines the docket but it’s also worth watching the PSAC-government talks. We suspect the latter could have greater implications for fixed income but there is the prospect of a historically large 155k workers going strike if a pay deal isn’t reached by 9pm ET.
  • Further upside pressure could open 1.3448 (Apr 13 high) whilst to the downside sits yesterday’s 1.3302 low.
  • Released late Fri, CFTC positioning for Apr 11 (pre BoC and US CPI on Apr 12) showed no material change with CAD net shorts of -34.3% OI near the most extended since 2019.

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