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USDCAD Rangebound As Usual Drivers Have Less Sway

CANADA
  • USDCAD continues to see little trend direction on the day, currently flat at 1.3426 towards the lower end of a 40 pip day’s range.
  • It’s despite emini S&P climbing 0.7%, which even though negative correlation has waned from -0.9 on a 20-day rolling basis it’s still notable at -0.7. Less surprising has been the complete fade of a 3+% rise in WTI with a strong disconnect emerging between the two [rolling correlations charted].
  • Bear threats are seen remaining present from a technical perspective with support at 1.3357 (Jan 9 low) but could require a small downside surprise in US CPI to break it at this stage.

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