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USDCAD Under Pressure With Equities & Oil Lifted

CANADA
  • USDCAD lifts 10 pips off session lows of 1.3584 (-0.2%) but broadly remains under pressure with the S&P E-mini holding the day’s gains (albeit off the post-open snap higher) and with WTI also extending Friday’s recover to chip further away at Thursday’s slide after weekend debt talk progress.
  • It sees the pair move closer to the middle of technical levels, after Friday’s high of 1.3655 and then 1.3647 post-strong US data came closer to key short-term resistance at 1.3668 (Apr 28 high). As it is, there is still some leeway to support at 1.3485 (May 23 low) after sizeable gains the day after helped by a hawkish Waller.
  • A normal trading day for Canada, volumes are nevertheless likely to be heavily depressed with Memorial Day observances. The docket is suitably light, with weekly Bloomberg Nanos consumer confidence and a 24-day bills auction. Data will soon heat up though with GDP on Wed one of the last key releases before the BoC on Jun 7.

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