May 16, 2022 19:01 GMT
- USDCAD extends the day’s slide amidst equity strength, hitting a session low of 1.2838 for -0.7% on the day. In doing so it tests initial support at 1.2842 (20-day EMA), a clear break of which could open 1.2814 (May 6 low).
- CAD remains top performer of the majors on the day but now only narrowly leads NZD and less so AUD.
- Repeating from earlier, latest CFTC net specs to May 10 showed the first net short position in CAD since late March and before that early Jan, which could potentially pave way for more supportive net longs ahead.
- Many potential triggers ahead with US retail sales and a deluge of Fedspeak including Powell tomorrow, before Canadian CPI on Wed.