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Weaker Elements Of CAD Data Setting Narrative Amidst Continued Volatility

CANADA
  • GoC yields have since swung lower again on continued volatility since CPI and US retail sales, with the 2Y now -4.7bps since both were released vs 0bps for Tsys.
  • Treasuries also saw a paring of losses as the retail data were further digested, helped by softer than expected industrial production more recently, but the GoC intra-day rally has been far more pronounced (with added downward pressure from softer than expected input prices released along with CPI).
  • It continues to put upward pressure on USDCAD, having just touched a session high of 1.3236 after poking above yesterday’s high and nearing support at 1.3243 (20-day EMA) after which sits 1.3304 (Jul 10 high).

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