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USDCAD Pressing Lower and CAD FI Underperforming Ahead Of CPI

CANADA
  • Ahead of CAD CPI at 0830ET, USDCAD has recently pushed to a new low of 1.3412, which after yesterday’s clearance of a key support at 1.3490 (Sep 1 low) has quickly opened next support at 1.3394 (50% retrace of Jul 14 – Sep 7 bull leg).
  • Crude futures are off highs but still see further gains after yesterday’s fresh ytd high for the settle, with NOK and CAD outperforming accordingly.
  • In FI space, GoCs underperform Tsys, with yields 3-4.5bps higher on the day vs 1-3bps for Tsys.
  • BoC-dated CORRA OIS has seen a decent increase from yesterday, rising +2bp to 10bp of tightening priced for the Oct 25 decision.

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