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USDCAD Holding 1.32 Before Retail Sale and CPI Tests

CANADA
  • USDCAD struggles to materially move away from 1.32, with the pair little changed on the day ahead of US retail sales and CAD CPI amongst a slew of data releases today.
  • CAD sits mid-pack, outperforming high beta peers but lagging more typically risk averse majors.
  • A corrective bounce has opened resistance at 1.3243 (20-day EMA) but a resumption of a prior downtrend could open support at 1.3084 (1.618 proj of Apr 28–May 8–May 26 price swing.
  • Option expiries for today’s NY cut are skewed higher though, with those with reasonable volumes at nearby strikes including $525m at 1.3240 and less so the $200m at 1.3200.

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