MACRO OUTLOOK: MNI US Macro Weekly: No Holiday For Tariff Watchers

• RES 4: 1.4415 High Apr 1
• RES 3: 1.4296 High Apr 7 
• RES 2: 1.4165 50-day EMA 
• RES 1: 1.3906/4029 High Apr 17 / 20-day EMA  
• PRICE: 1.3871 @ 16:29 BST Apr 23
• SUP 1: 1.3781 Low Apr 21
• SUP 2: 1.3744 76.4% retracement of Sep 25 ‘24 - Feb 3 bull run
• SUP 3: 1.3696 Low Oct 10 2024
• SUP 4: 1.3643 Low Oct 9 ‘24 

A bearish theme in USDCAD remains intact for now despite Wednesday’s spot rally. Fresh cycle lows continue to highlight a resumption of the downtrend and signal scope for a continuation near-term. Potential is seen for a move towards 1.3744, a Fibonacci retracement. Moving average studies are in a bear -mode position, highlighting a dominant downtrend. First resistance to watch is 1.4029, the 20-day EMA.

$11.85B to Price Wednesday

• Date $MM Issuer (Priced *, Launch #)
• 04/23 $4B *Walmart $750M 2Y +22, $750M 2Y SOFR+43, $1B 5Y +37, $1.5B 10Y +52
• 04/23 $2.25B #QXO Inc. 7NC3 6.75%
• 04/23 $1.5B *OCP $750M 5Y +235, $750M +10Y +260
• 04/23 $1.25B *Rentokil Terminix $750M 5Y +115, $500M 10Y +135, 
• 04/23 $1B *Jane Street 8NC3 6.75%
• 04/23 $750M *Bank of Peru 10.25NC5 6.5%
• 04/23 $700M *Guardian Life 5Y +80
• 04/23 $400M *Hanwa Futureproof 3Y +95

Decent SOFR & Treasury option flow on the day, leaning towards downside rate hedges and curve steepeners fading today's flattening. Underlying futures near late session lows as early sentiment over slashing China tariffs evaporated. Projected rate cuts continue to retreat from this morning's levels (*) as follows: May'25 at -2.1bp (-2.7bp), Jun'25 at -15.1bp (-17.7bp), Jul'25 at -33.6bp (-36.9bp), Sep'25 -51.6bp (-55.2bp).

• SOFR Options:
  • -7,000 SFRM5 95.87 calls, 9.5
  • +10,000 SFRK5 95.68/95.75 put spds, 0.75
  • Block, -5,000 SFRZ5 96.62/97.12 call spds, 13.0 vs. 96.49/0.18%
  • +20,000 0QM5/0QN5 97.00/97.25 call spd spd, 1.25 net/July over
  • -10,000 SFRM5 95.75/95.93/96.18/96.37 call condors, 5.5 ref 95.89
  • +4,000 0QU5 97.00/97.50 call spds 1.25 over 2QU5 96.87/97.37 call spds
  • +10,000 SFRU5 95.25/95.75 put spds, 3.25 ref 96.245
  • -4,000 SFRZ5 96.25/96.50/96.81 broken call flys, 1.0 ref 96.505
  • 10,000 SFRU5 95.75/95.87/96.00 put trees, 0.5 ref 96.24
  • Blocks, 12,000 0QM5 96.87/97.25 call spds, 10.5 ref 96.76
  • 5,000 SFRM5 95.62 puts & 5,900 USM5 95.75 puts
  • 3,000 SFRZ5 95.37/95.62 put spds ref 96.495
  • 3,000 SFRM5 96.18 calls, 5.0 ref 95.88
  • 3,300 SFRZ5 95.37/95.81 put spds ref 96.49
  • Blocks, 6,700 SFRU5 95.25/95.75 put spds, 3.75
  • 2,000 SFRK5 95.68/95.75 2x1 put spds ref 95.88
  • 2,000 SFRM5 96.25/96.37 call spds ref 95.855
  • 2,000 SFRK5 96.12/96.25 call spds vs. 95.75 puts ref 95.90
• Treasury Options:
  • 6,500 TYM5 111 calls, 59, total volume over 33.5k
  • 5,000 TYK5 110.5 puts, 7 ref 111-00.5
  • 5,000 TYM5 111 puts, 54 ref 111-03 total volume over 26k
  • +7,500 TYM5 111 straddles, 156
  • 2,000 TYN5 109/114 strangles ref 111-10
  • 1,058 FVM5 108.5/109.5/110.5 call flys ref 108-12
  • +1,000 FVK5 108.25/108.5 strangles, 18.5 ref 108-11.75
  • over 19,900 TYK5 111.5 calls
  • over 14,400 TYM5 112 calls, 36 last
  • over 10,500 TYM5 115.5 calls, 4 last
  • over 3,600 USM5 117 calls, 108 last ref 115-10
  • 1,600 TYK5 111/111.5 strangles ref 111-04
  • 1,500 FVN5 107/108 put spds ref 108-09.75
  • Block, 10,000 TYM5 112/115.5 call spds, 30 vs 111-01/0.28%
  • 1,500 FVM5 109/110/110.5 broken call flys ref 108-06.5
  • 1,500 TYK5 110.5/111.75 call spds ref 110-31.5
  • 9,000 USM5 118/120 call spds, 18 ref 114-14
  • 3,600 TYK5 111.5 calls, 6 ref 110-28.5