CAD momentum has moved again into positive territory. However, our short-term indicator of spot vs. Vol correlation has not moved higher at the same time. These mixed signals suggest to us that this period of CAD strength is not yet entirely finished. Canadian Sept Employment data is due next week and it tends to be subject to significant revisions. The market will be looking at the full-time employment component.
Similarly, the US data out at the same time will be considerably impacted by the effects of the hurricanes and it will take months before the US employment data starts to normalize.
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