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MNI: FED'S POWELL STILL SEES POSSIBLE PATH TO SOFT LANDING

MNI: POWELL: FED PREPARED TO TIGHTEN FURTHER IF APPROPRIATE

FED'S GOOLSBEE: 'YOU CAN'T BACK OUT NOW' ON INFLATION FIGHT

MNI: BAKER HUGHES US RIG COUNT 625; OIL RIGS 505; GAS RIGS 116

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: BOE Long APF Operation on Monday

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

MNI BRIEF:Macklem-Fiscal Policy Turning Unhelpful On CPI Fight

MNI BRIEF: Stabilizing Prices Helps BOC Turn Neutral-Freeland

Wider CAN-US Yield Differentials Likely Weighing On CAD Today

CANADA
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  • USDCAD at 1.3665 is seeing a slight unwinding of the earlier rise to 1.3684, itself having come after lifting off a low of 1.3629 which cleared support at the 50-day EMA of 1.3639. A resumed move lower could a trendline support at 1.3570 drawn from the Jul 14 low.
  • Looking more broadly, the typical drivers for recent moves in USDCAD don’t warrant the intraday lift today. The S&P e-mini maintains particularly narrow ranges to consolidate Friday’s post-payrolls gain and WTI is currently +1.5% to retrace some of Friday’s slide.
  • One factor potentially carrying more prominence is a further drift wider in CAN-US yield differentials, at -49bps for the 2Y and -85bp for the 10Y.
  • Released late Friday, CFTC data showed a fourth consecutive month for CAD net shorts, at least in futures space, at -25%. It compares with -38% for AUD and -22% for NZD.

Source: Bloomberg

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  • USDCAD at 1.3665 is seeing a slight unwinding of the earlier rise to 1.3684, itself having come after lifting off a low of 1.3629 which cleared support at the 50-day EMA of 1.3639. A resumed move lower could a trendline support at 1.3570 drawn from the Jul 14 low.
  • Looking more broadly, the typical drivers for recent moves in USDCAD don’t warrant the intraday lift today. The S&P e-mini maintains particularly narrow ranges to consolidate Friday’s post-payrolls gain and WTI is currently +1.5% to retrace some of Friday’s slide.
  • One factor potentially carrying more prominence is a further drift wider in CAN-US yield differentials, at -49bps for the 2Y and -85bp for the 10Y.
  • Released late Friday, CFTC data showed a fourth consecutive month for CAD net shorts, at least in futures space, at -25%. It compares with -38% for AUD and -22% for NZD.

Source: Bloomberg