[LFX]

A rising yield differential is helping USDCAD higher. The BoC tried what it could on Thusrday the MPR and a speech by Carney to pressure CAD away from another steep acceleration. It isn’t having much of an impact as USDCAD stabilizes below 1.05. Retail sales ex auto sales were a marginal improvement from the disappointing July. USDCAD yesterday suffered as the BoC turned bearish emphasizing the negative impact of the CAD on growth and its deflationary impact. This pushed USDCAD higher spiking from 1.0267 to 1.0550. Leading indicators continue to give green signals for Canada in September while wholesales were a disappointment but are in any case from August. Railway traffic however with the US suggests that activity in September was quite slow, the Beige book also gave quite a disappointing reading.