USDCAD SLIPS AND YIELDS DOWN, AHEAD OF POLOZ SPEECH


USDCAD, H1

10-year GoC yields are down -1.3 bp at 2.518%, the 2-year yield is down -0.4 bp at 2.34%. Like Treasury yields, 10-year GOC rates have come down from the highs seen in the wake of robust US data on Friday, but the 10-year is holding above the 2.5% mark in Canada, above the 3.2% rate in the US and in Europe Bund and Gilt yields are up 0.7 bp and 2.7 bp respectively, while the 10-year JGB closed up 0.4 bp at 0.118%. Stock markets struggled with rising yields and fading hopes of a U.S.-China trade deal during the Asian session, but stabilised in Europe on fresh Brexit hopes. North American equity futures are moving higher in tandem.

Meanwhile, with USOil trading to lows of $63.50 pressure on the Loonie remains. However, USDCAD traded sideways today and has immediate Support at 1.3095/90 and then S1 at 1.3060. Immediate Resistance sits at the Fractal Highs and Upper Bollinger band at 1.3115 and R1 at 1.3131.

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