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USDCAD Resumes Decline, BoC Minutes & FOMC Ahead

CANADA
  • USDCAD has recently nudged to session lows of 1.3424 but remains within yesterday’s wide range, with strong CAD CPI driving a low of 1.3381 before it ultimately recovered to close out the session at ~1.344.
  • Today’s decline comes with broader USD weakness as equities lift, whilst WTI extending yesterday’s second half decline weighs on CAD on crosses after recent outperformance.
  • The bear cycle is seen remaining in play with support at that 1.3381 after which lies 1.3323 (61.8% retrace of Jul 14 – Sep 7 bull leg).
  • Overnight, Unifor reached a tentative deal with Ford on a 3-year national contract, preventing its 5.6k members from striking at every one of Ford’s facilities in Canada.
  • Ahead, the BoC minutes are released at 1330ET in its customary position just 30mins ahead of the FOMC decision that likely dampens reaction to any surprises.

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