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USDCAD remains locked in a rising.....>

DOLLAR-CANADA
DOLLAR-CANADA: USDCAD remains locked in a rising wedge chart pattern with the
May 9 high & triangle top at 1.3500/05 proving hard to overcome. Focus turns to
domestic CPI at the bottom of the hour with RBC forecasting a 2.0% y/y increase
in April headline inflation due to continued moderation in year-ago gas price
declines (expected close to flat). The bump up in the BoC's core measures in
March - 0.2pp from the originally reported February levels for CPI-Median and
CPITrim - got an outsized reaction given a very tight range (1.82.0%) since
early 2018. Easier base effects suggest some risk of another rise, but we think
it's more likely there is little change from last month's average (1.97%). Last
C$1.3475.

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