FX Action: USD-CAD has settled in the lower 1.23s
FX Action: USD-CAD has settled in the lower 1.23s after bolting to a two-week high of 1.2391 on Wednesday, following the Fed's hawkish guidance, which has helped readdress the recent imbalance between the respective Fed and BoC outlooks. Analysts expect the pair to hold up for now. This comes amid signs that the four-month bear phase in USD-CAD, during which time the U.S. buck lost 12% to the Canadian dollar, was starting to wane. Last week was the first up week in last five weeks, while momentum indicators were showing that the bear trend had been starting to look overstretched. The early-September high at 1.2415 provides an initial target ahead of 1.2500. Support is at 1.2283-85. Canadian August CPI is up today, which analysts see at 1.6% after 1.2% in July. Retail sales are also due, expected to grow 0.3% in July.