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USDCAD Tests Resistance After Which Lies Mid-Dec Bull Trigger

CANADA
  • USDCAD touches 1.3664, testing 1.3665 (Feb 24 high from after the US core PCE beat) before retreating ~10 pips. Clearance could open the bull trigger of 1.3705 (Dec 16 high).
  • S&P E-minis near session lows of a particularly narrow range pre-Powell, whilst Can-US bond yield differentials are close to recent lows (2Y and 10Y -63/62bps), with rate diffs having increased pull in recent weeks.
  • Currently +0.35% on the day, the pair is 2% higher than before the last BoC decision but remains off October highs of 1.39 that drew more outright commentary from the Bank.


Source: Bloomberg

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