USDCAD Long Setup: Decoding the Loonie's Fundamental Divergence

Tech has spent the month defying historical seasonal patterns, but the broader picture is showing some visible friction [1]. The latest U.S. Core PCE print came in at a softer 0.2% month-on-month, offering a bit of breathing room on the inflation front [2]. Yet, the jump in the Chicago PMI to 62.7 and a flat personal income reading remind us that the economic backdrop is anything but straightforward. While tech valuations are kept afloat by massive compute capital expenditure [3][4], other pockets of the market are feeling the weight of high rates [5]. We are seeing a clear divergence between…