Loonie extends its recovery from circa 1.2500 to crest 1.2450 in advance of Canadian CPI tomorrow. The dollar index has bounced firmly from worst levels and is probing 92.000 without extra leverage from Treasury yields in the run up to 20 year supply, with knock on adverse effects for basket components like Sterling that is being capped below 1.3900. 1.2350 is now a landing spot for USD/CAD.
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