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USDCAD Seeing Downward Pressure From Equity Gains

CANADA
  • The latest push higher in US equities, with First Republic having reversed a 36% drop to trade positive, sees USDCAD move nearer the day’s low.
  • Currently 1.373 (-0.25%) the pair still sits well within yesterday’s 154pip range, the high of which forms resistance at 1.3814 whilst support is a little further off at 1.3652 (Mar 14 low).
  • The move lower pulls away from the 1.38 handle breached last week prior to SVB’s issues coming to the fore for the first time in earnest since October. It comes with a relatively smaller adjustment for CAD rates for 2023 from what was a lower starting point for relative policy rate paths.

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