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USDCAD Hits Session Lows As Equities Surge, Scope For Further Moves

CANADA
  • USDCAD has touched new session lows of 1.3438 with the push higher in equities as the S&P E-mini probes May 10 resistance and most recently appears to have cleared it.
  • The pair is still off yesterday’s post-CAD CPI low of 1.3404 with further support at 1.3363 (May 11 low).
  • Unlike today with its heavy option expiry at 1.3450 and 1.3400 at the earlier cut, there aren’t any sizeable nearby strikes which could free up some more movement ahead.
  • Tomorrow sees some notable second tier US data, including initial jobless claims for a payrolls reference week after Massachusetts fraud biased the reading higher in last week’s release which in turn helped drive risk-off moves that haven't been fully reversed (the above support at 1.3363 came prior to claims). The BoC also present its financial system review.

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