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USDCAD Lifts Further Off Yesterday’s Bearish Extension

CANADA
  • USDCAD briefly hits session highs at 1.3445, 1.344 (+0.4%) currently, with CAD roughly midpack of majors, as equities reverse an earlier gain coinciding with Powell’s prepared remarks not commenting directly on monetary policy plus more recently oil slipping.
  • The pair moves further off yesterday’s low of 1.3357 that forms initial support after the recent bearish extension, but remains within yesterday’s range and away from resistance at the 50-day EMA of 1.3529.
  • US CPI on Thu remains firmly in focus with key CAD indicators next week with the BoS/CSCE surveys (Jan 16) and CPI (Jan 17) before BoC Jan 25.

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