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USDCAD Trades Near 20-Day EMA Support After Earlier Clearance On Strong Oil

CANADA
  • CAD is the main beneficiary of a strong push higher in crude (WTI +1.75%) and broader USD strength, leading the G10 FX pack on the day.
  • USDCAD trades 1.3559 off a recent low of 1.3546 before WTI dipped off earlier highs, in a move that tentatively dipped below support at 1.3558 (20-day EMA). A more earnest push lower could open 1.3490 (Sep 1 low).
  • It comes with another light docket for both the US and Canada, although the Canadian net foreign asset position did show another size increase in Q2 to a historically elevated +44% GDP on the back of the strength in US equities.

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