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USDCAD Nudging Higher Ahead Of Durable Goods

CANADA
  • USDCAD has firmed in recent hours to nudge above Friday’s close, trading +0.12% at 1.2907 with CAD mid-pack of the other majors on the day.
  • Can-US yield differentials remain positive but don’t provide the same downward force for the pair seen earlier this month at the front end. The 2Y diff is just +5bps compared to highs of +35bps (early Jun) and +25bps (last week).
  • Reasonably large option expiry with 1.015B at 1.2920 for today’s cut-off could help keep the pair at a similar level in the very near-term, but could depend on upcoming US durable goods.
  • Support is eyed at the 20-day EMA of 1.2856 (intraday low of 1.2865) whilst resistance is unchallenged for now with a bull trigger eyed at 1.3079 (Jun 17 high).

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