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USDCAD Unfazed By Hawkish Macklem

CANADA
  • A hawkish Macklem with a subsequent spike in GoC front end yields (2YY +12bps vs +8bps Tsys) has done little to boost CAD.
  • USDCAD has since hit new session highs of 1.3745, currently just shy off, and it has reversed a break lower on crosses such as AUDCAD on initial remarks of not being done hiking or ready to consider a more meeting-by-meeting approach.
  • This could be reluctance to take positions ahead of tomorrow’s US and Canadian labour reports.
  • USDCAD resistance seen at 1.3838 (Sep 30 high) after latest clearance whilst initial support could be seen at Tue-Wed lows of 1.3503-04 with firmer support not until the 20-day EMA of 1.3466.

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