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USDCAD Holding Push Higher Ahead Of Data, Central Bank Flurry

CANADA
  • USDCAD is hovering near 1.388 having pushed to session highs of 1.3389 (+0.6%) against a backdrop of USD strength ahead of a flurry of data/central banks.
  • The earlier ~20 pip recent move higher was somewhat limited to FX space but is more recently supported by a further move lower in e-mini S&P.
  • Can-US yield diffs marginally more favourable for CAD on the day (2YY GoC +7bp vs +5.5bp) but not enough to move the dial.
  • Still some headroom for USDCAD before next resistance at the 20-day EMA of 1.3434, whilst support remains overnight lows of 1.3300. Tomorrow sees US ECI and MNI Chicago PMI plus CAD monthly GDP before the Fed kickstarts the central bank decisions Wed.

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