USD/CAD: Canadian Dollar outperforms on yields – Rabobank

Rabobank strategist Molly Schwartz highlights that the US Dollar (USD) was the third best-performing G10 currency, but the Canadian Dollar (CAD) outpaced it, pushing USD/CAD down to 1.37, reflecting relative CAD strength on the day. She also cites comments from Trade Minister Dominic LeBlanc on resolving trade issues, including disputes over Canada’s supply-managed dairy sector, ahead of the USMCA review and upcoming talks in Mexico City.

CAD leads G10 as pair slips

"Higher oil prices yesterday supported higher US Treasury yields, with a slight steepening bias, with the 2 year closing up 1.2bp and the 10 year up 2.2bp."

"USD was the third best performing G10 currency. But an even better performing G10 currency was CAD, which outperformed USD by 0.28%, as USD/CAD closed the day at 1.37."

"Yesterday, Canadian Trade Minister Dominic LeBlanc said that “if [Canada] is going to resolve some of these issues that Ambassador Greer referred to, Canada is ready and willing to do that work.” Such “issues” include long-standing conflicts about Canada’s “supply-managed” dairy industry. As we head into the USMCA review period this summer, Greer will also be heading to Mexico City this upcoming Monday."

"Canada will report March housing starts with expectations for 258,000 units compared to the prior reading of 250,900. International securities transactions data for February will follow, with the previous month showing CAD 46.73b."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)