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USDCAD Testing Support As Last Week's USD Strength Dissipates

CANADA
  • USDCAD is testing Friday’s low of 1.348 with equities well off session lows and CAD rates underperformance having an impact at the margin after earlier strength of housing data.
  • A clear break from here could open support at 1.3363 (May 11 low) seen prior to risk-off extended by a surprising jump in initial jobless claims which has subsequently been found to have been notably boosted by fraud in Massachusetts.
  • The weaker US Empire mfg survey still weighs modestly on CAD relative to other high beta peers, with CAD gaining +0.5% to the USD vs +0.55% NZD, +0.6% NOK and +0.8% AUD.

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