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USDCAD Touches New Session Lows With Risk-On

CANADA
  • USDCAD touched a new session low of 1.2525 on the latest extension of equity strength, through yesterday’s low of 1.2535 and a continuation of the bearish trajectory for the cross in what could ultimately open 1.2459 (Apr 21 low).
  • High Can-US yield differentials are supporting CAD but risk sentiment remains the key intraday driver as other fundamentals take a back seat, e.g. the largely looking through the shrinking goods & service trade surplus for April earlier today.
  • Scheduled drivers remain skewed to the end of the week, starting with the BoC's Financial System Review including Gov Macklem's presser on Thu before US CPI and Canadian employment on Friday, further leaving the pair at the mercy of sentiment in the meantime.

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