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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CANADA
- USDCAD sits +0.3% at 1.2895 in the middle of yesterday’s range but still largely back at pre-payrolls levels, with CAD second only to AUD for underperforming majors on the day.
- The bid comes in conjunction with E-mini S&Ps edging lower and oil unwinding prior gains. Worth noting USDCAD 1M risk reversals sitting near 2-month lows at 1.18 ahead of US CPI tomorrow.
- Gains in the pair have been considered corrective since previously clearing 1.2819 (Jun 28 low), with support next seen at 1.2818 (Aug 4 low) and then multiple at 1.2767/63 (Aug 1/June 13 lows). Resistance meanwhile is seen at 1.2985 (Aug 5 high), required to strengthen the case for bulls.
- Decent option expiry with 1.05B at 1.2900 for tomorrow’s cut-off could lend some near-term traction but is unlikely to withstand pressure from any CPI surprises.
USDCAD spot (white) and 25D 1M risk reversal (yellow)Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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