FX Update: USD-CAD vaulted upwards on weak Canadian data
FX Update: USD-CAD vaulted upwards on weak Canadian data, which has driven the pairing some 50 pips higher in making a 1.2731 high, since settling around 1.2712-15. Thin conditions, with the U.S. out, have exacerbated the magnitude of movement. USD-CAD had earlier clocked a 10-day low at 1.2672, amid broader weakness in the U.S. dollar. Canadian retail sales data showed a 0.1% m/m rise, well off the median forecast for 1.0% growth. The data accompanies recent BoC policymaker guidance emphasizing that there is no rush to continue with its gradual tightening cycle, though with the U.S. dollar under broad pressure there may be limited potential for USD-CAD to sustain upside direction. USD-CAD has resistance at 1.2730-32 (just tested), and support at 1.2678-80.