CAD: CORRELATION WITH INTEREST RATES BREAKSDOWN
• USD is mixed with European FX outperforming.
• CAD is flat after a maintenance BoC statement; the correlation between CAD & interest rates has broken down; spot tests range.
• EUR is strong—surprisingly resilient in May; m.t. trend is downwards.
• GBP is essentially flat on limited news flow. Technicals remain bearish.
• EURCHF stabilized after Switzerland released a strong GDP at 0.6%q/q.
• JPY is weak after a somewhat volatile session; Nikkei plunges 5.1%.
• AUD flat as expected capital expenditure shifting lower. RBA on Tues.
• NZD weak after RBNZ focuses on strong NZD; intervention is ongoing.
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Scotiabank