Dollar/CAD took another step on the way down, dipping under 1.25. The next level of support is 1.2460. The low so far is 1.2494. After the initial dip, we have a minor bounce back, which looks like a “dead cat bounceâ€.
Better than expected Canadian wholesale sales drive the loonie forward. They rose by 0.9%, better than 0.5% expected. While it came on top of a small downwards revision, the data looks upbeat.
It joins the hawkish hike by the BOC and the generally positive figures coming out of Canada. Jobs, retail sales, GDP growth, and basically everything is going in favor of the C$.
The other side of the currency pair is the ongoing weakness of the US dollar. A small miss in existing home sales joined other news: subdued inflation, weak wages, mediocre retail sales and also political developments. The pace of news around President Trump’s dealings with Russia has intensified.
More: USD/CAD: What’s The Post-BoC Trade? – Nomura
Here is the daily chart of USD/CAD. 1.2460 was a low point last year.
