S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Societe Generale’s Kenneth Broux highlights that the Canadian Dollar has recovered to its strongest level in two months, with USD/CAD mean‑reverting to 1.3933 from 1.4248. The pair now trades close to fair value on 2‑year spread models, and a test of 1.3900 would mark a 50% retracement of the May–June rally, helped by stronger WTI and reduced speculative shorts.
Fair value nears as rally retraces
“In Canada, building permits will play second fiddle to US CPI as the loonie recovers to the strongest level in two months.”
“USD/CAD has mean reverted to 1.3933 from 1.4248 in late June and trades close to fair value based on 2y bond spreads (Rsq 0.8).”
“A test of 1.3900 would mark a 50% retracement of the May-June rally.”
“The loonie has been supported by the rebound in WTI above $82/b, the elimination of speculative short positions and the dovish repricing of the Fed post NFP.”
“Long CAD/short JPY (+0.63%) is the best carry performer in G10 so far in August.”
