FX Action: USD-CAD has settled under 1.3200
FX Action: USD-CAD has settled under 1.3200 after peaking yesterday at 1.3259, which is a three-week peak. Fed chair Powell's upbeat view of the U.S. economy, along with recent hefty declines in oil prices, formed a cocktail of bullish narratives for USD-CAD. Analysts retain a bullish view of the pairing, looking for a revisit of the June highs at 1.3384-87. Support comes in at 1.3146-68. The Canadian calendar is empty today, but picks tomorrow with the release of retail sales and CPI data. Analysts expect retail sales to snap back by 1.0% in May after the 1.2% loss in April that was blamed on poor weather during the month (ice storm!). Analysts anticipated CPI to slip 0.1% in June (m/m, nsa) after the surprisingly slim 0.1% gain in May, as falling gasoline prices impact in June. The annual growth rate is seen at 2.2% (y/y, nsa), matching the 2.2% y/y clip in May. The three core CPI measures are expected to maintain 1.9% annual rate of expansion in June.