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USDCAD Probes Further Resistance Levels

CANADA
  • USDCAD has touched new session highs of 1.3365 as it builds on yesterday’s uplift, pushing through the 20-day EMA of 1.3359 and moving closer to next resistance seen at 1.3371 (Dec 20 high). Next potential resistance could be 1.3409 (Dec 18 high).
  • The S&P e-mini hovers close to lows seen both today and yesterday, whilst negative Can-US yield differentials see a sizeable widening with the 2YY at -39bp (-1.7bp) and 10Y at -80bp (-4.5bp).
  • There's sizeable short-term option expiry at nearby strikes, with today’s NY cut seeing $1.3bln at 1.3330-40 before $1.0bln at 1.3395 tomorrow.
  • US factors are at the forefront ahead, with JOLTS and the ISM manufacturing index at 1000ET before the FOMC minutes at 1400ET.

Source: Bloomberg

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