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USDCAD Relatively Resilient To Latest Equity Slip Lower

CANADA
  • The aforementioned slide in US equities with the S&P e-mini back near yesterday's lows has had a relatively muted impact on USDCAD, still firmly within yesterday’s wide range that saw a brief clearance of 1.35 and a tilt into oversold territory before a correction lower.
  • Currently +0.2% at 1.3442, technicals point higher with that resistance at 1.3502 before 1.3523 (76.4% retrace of May 26 – Jul 14 downleg), whilst support is also seen at yesterday’s low of 1.3364.
  • WTI holding further gains on the day does little to help CAD on crosses, only outperforming Antipodeans and GBP across G10 FX.
  • Data: Building permits were far stronger than expected in June but led by the volatile non-residential component. That rounds off a quiet week for CAD data but with US CPI firmly in the driving seat tomorrow.

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