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USDCAD Tilts Lower With Equities Firming

CANADA
  • USDCAD has seen downward pressure with the lift in the S&P e-mini since softer U.Mich inflation expectations, with CAD outperforming all but GBP after stronger GDP data on the day after recent underperformance.
  • It has shifted from a post-US PPI high of 1.3466 to a session low of 1.3413 although it only falls back into yesterday’s range.
  • Technical levels continue to be set by Tuesday’s wide range with resistance at 1.3502 (Aug 8 high) and support at 1.3364 (Aug 8 low). The trend direction points higher but whilst the 14-day RSI is off its recent tilt to oversold conditions it’s still elevated at 62.
  • Canadian CPI on Tuesday looms on the horizon, the last CPI report before the BoC decision on Sep 6.

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