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May 02 - 11:55 AM

USD/CAD - Drifts Lower Amid Less-Hawkish Fed Rate Expectations

By Paul Spirgel  —  May 02 - 10:40 AM
  • $CAD soft in early NorAm, -0.2% at 1.3710; Thursday range 1.3737-05

  • Post-Fed CAD strength intact; Fed cut odds rise as Powell shrugs off hike

  • LSEG's IRPR touts 68% odds for Sept cut, Nov near-100% priced in IRPR

  • BoC: There's a limit to how far US and Canada rates can diverge

  • BoC's Macklem: Bank could start cutting rates before inflation rate hits 2%

  • $CAD supt at 1.3705 Wed/Thur lows, 1.3696 10-DMA, 1.3663 daily base line

  • Res 1.3737 Thurs high, 1.3755 upper 21-d Bolli, 1.3847 Apr 16 2024 high caps

Source:
Refinitiv IFR Research/Market Commentary

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