ISRAEL: Consumer Prices Rise 3.6% Y/Y in April (Est: +3.1%)

USD/CAD hits a new daily high following the London close - 1.3938 marks the new daily high having cleared both the overnight high as well as Monday's 1.3911.

• Moves come despite Canada's decision to provide tariff exemptions for automakers that stay within Canada (GM and Stellantis both maintain assembly plants in Ontario) as well as a six-month counter-tariff delay to some US goods.
• Instead, the further weakness in energy prices will be working against the currency. The bounce off lows for Brent crude futures appears to have stalled, keeping prices either side of $64/bbl and looking once again fragile now that the oversold condition has unwound.
• That said, a bearish theme for USD/CAD remains intact for now. Last week’s move down marked a resumption of the downtrend and has signalled scope for a continuation near-term. Potential is seen for a move towards 1.3744, a Fibonacci retracement.
• The Bank of Canada decision due tomorrow is the next focus - and while consensus looks for no change to rates tomorrow - a significant minority eye a further 25bps rate cut, which will be supporting overnight vols, which opened close to 15 points earlier today.

• 7,500 TYM 109 puts, 25 vs. 110-31/0.23 at 1115:14ET, additional 6,600 on screen.
• Additional screen trade includes:
  • 10,000 TYK 111.25/111.75 1x2 call spds, 8 net ref 110-28.5
  • 2,900 TYK5 110/112 strangles vs. TYM5 109/113 strangles

• USD/JPY: Apr17 Y145.00($1.4bln)
• USD/CAD: Apr17 C$1.4000($1.4bln)