March 17, 2023 18:11 GMT
USDCAD Sees Decent Move Off Highs But CAD Still Bottom Of G10 Pack
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- USDCAD extended an intraday push lower for now more than 50 pips off highs, a decent move considering a relatively mild bounce off session lows for the S&P E-mini.
- The pair dipped back below 1.372 for little changed on the day with CAD bottom of the G10 FX pack on the day, with a narrowing of negative Can-US yield differentials (be it short-term rates or further out with the GoC curve) counting for little for the loonie.
- It caps a week with relatively little change in the Canadian dollar on a real effective basis, although it follows a prior slide leaving it 4/6% lower than 5/10-year rolling averages in contrast to a more resilient high growth beta peer such as the AUD.
- Next week sees a pick-up in the local calendar, with CPI Tue (input costs eased more than expected today following a similar outturn in US PPI), the BoC’s minutes after it paused last week and retail sales Fri.