USDCAD jumps as retails give BOC watchers some food for thought ahead of next weeks BOC meeting
The CAD has been poleaxed in yet more jumpy data moves. We’ve smashed through resistance up to a high of 1.2567 as retails sales disappointed and core CPI fell. With the BOC meeting next week, that’s put the cat amongst the pigeons for the hawkish traders.
As I’m fond of saying, retails can be volatile at the best of times. Year on year sales at 6.9% isn’t something to be sniffed at so the numbers aren’t that bad, even if there’s some monthly volatility. I’m loathed to think this move is really substantial.
The price will do what the price will do and now it remains to be seen what we do up here. I’ve taken a small short at 1.2558 and will be watching to see if 1.2560 holds and then the 1.2567 high. I’ve got a provisional stop at 1.2575 and if we move there, I’ll look to short into 1.2600 for a big figure and stretch play.
Update 13.53: 1.2560 is broken again and now I’ll watch the action at the highs. If that breaks I may deceide to bail early before my 1.2575 stop.
14.01: And I’m out.