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USDCAD Heads Lower Still, Helped By Oil

  • USDCAD touches new session lows of 1.2627 as a further increase in oil has helped offset recent modest dollar strength.
  • With the pair -0.4% on the day, CAD sits distinctly mid-pack despite yesterday’s surging CPI report as 2022 rate hike expectations have been modestly trimmed seemingly on a rowing back of peace talk hopes.
  • Despite this, yesterday’s clear break of 1.2964 (Mar 11 low) has opened support at the bottom of the post-invasion range of 1.2587 (Mar 3 low), whilst resistance is seen at the 20-day EMA of 1.2747.
  • However, the hawkish Fed could well limit a further material slide in the USDCAD.

Source: Bloomberg

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