USD/CAD continued to rise during the American session. The Loonie dropped dramatically across the board after the release of Canadian economic data and kept falling afterward.
USD/CAD: best day in months
The pair has risen more than a hundred pips over the last three hours. It was hovering around 1.2490 before the data and it just printed a 7-week high at 1.2608. At the moment of writing it was trading around 1.2600, consolidating important gains.
The pair was already moving with a bullish bias amid a stronger US dollar. It accelerated after the release of CPI and retail sales data. According to the report, the CPI rose in September 0.2%, below the 0.3% expected while the core CPI climbed 0.2% also below expectations. In another report, retail sales also missed forecasts. Sales contracted 0.3% in August, while sales excluding the Autos sector dropped 0.7%; a minor increase was expected in both readings.
Canada: Consumer Price Index (CPI) rose 1.6% on a year-over-year basis in September
Canada: After increasing 0.4% in July, retail sales declined 0.3% in August to $48.9 bln
Equity prices in Wall Street reached new record highs and in Canada the S&P/TSX Composite Index was up 0.30%, unaffected by the announcement that Concordia International Corp will seek to restructure its debts.
USD/CAD significant levels
To the upside resistance levels might be located at 1.2605/10 (Oct 20 high), 1.2650 (Aug 10 low) and 1.2660 (Aug 31 high). On the flip side, supports could be seen at 1.2590 (Oct 17 high), 1.2555 (Oct 9 / Oct 16 high) and 1.2520 (Asian session high).
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