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USDCAD Pushes Session Lows With WTI Recovery

CANADA
  • USDCAD pushes to new lows for the day at 1.3444 (-0.3%), with CAD lagging high beta peers that generally outperform on the day as WTI unwinds yesterday’s second half dip.
  • Yesterday’s gains for the pair stopped nudged resistance at 1.3523 (20-day EMA) but are seen as corrective, with support at 1.3381 (Sep 19 low) after stronger than expected CPI.
  • Domestic data remains in focus today with retail sales for July at 0830ET. Consensus sticks to the 0.4% M/M advance from last month along with a marginally stronger 0.5% for ex-autos.
  • We watch how this translated to volumes in July after some weak months left the 3M/3M trend at -3% annualized in Q2, as well as the nominal advance for August.

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