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USDCAD Lifts With Macklem Sticking To Message

CANADA
  • USDCAD has shifted higher to hit 1.3509 with Macklem largely sticking to prior mon pol guidance as Can-US yield spreads widen again after significant tightening post CPI (2YY sees 5bp intraday rally for +2.5bp on the day vs +6.5bps).
  • CAD continues to outperform other majors amidst USD strength, but by conceding 0.4% to the USD it closes the gap.
  • The pair remains within yesterday’s range, off the high of 1.3536 with firmer resistance at 1.3568 (May 15 high).
  • Retail sales land tomorrow for the next domestic steer as OIS shifts back from circa 1/3 odds of a 25bp hike on Jun 7 vs closer to 50/50 earlier.

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