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USDCAD Testing Friday’s Post-Employment Report Low

CANADA
  • USDCAD is testing Friday’s low of 1.3338, a level hit long after the far stronger than expected labor report, despite CAD underperforming most majors today.
  • The move is buoyed by S&P e-mini pushing up to overnight highs, whilst from a fundamental angle is still supported by the post-employment narrowing in Can-US yield differentials (albeit to a still heavily negative -45bps for the 2Y).
  • A further improvement in risk sentiment is likely required to help open support at 1.3262 (Feb 2 low) with the bear trigger at 1.3226 (Nov 15 low) beneath that.

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