CAD is underperforming all of the G10 - Scotiabank

CAD remains quiet with a fourth consecutive session of consolidation around key technical support levels just above last Friday’s short-lived jobs-driven low. 

Key Quotes:

"Domestic risk is limited ahead of Thursday and CAD is underperforming all of the G10 currencies the context of renewed USD weakness."

"BoC Gov. Schembri’s speech topic is ‘Canada’s approach to price stability’ and he is scheduled to speak on Thursday in Winnipeg at 12:45pm (1:45pm ET)."

"Domestic rate expectations have softened modestly in the wake of last Friday’s jobs data and yield spreads remain elevated with the 2Y U.S.-Canada hovering just below 30bpts."

"Measures of sentiment are showing signs of a turn however, and may offer CAD near-term support as risk reversals fade their recent surge (pricing a greater premium for protection against CAD weakness across a range of time horizons)."

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