Strong Canadian CPI and retail sales numbers sparked a final dip.
USD/CAD is more than 120 pips from the earlier low of 1.2088. Heavy selling followed strong inflation and CPI numbers but after yet-another squeeze lower in the pair, some very larger bidders have appeared.
USDCAD
USD/CAD shorts following the BOC were an amazing trade this week, helped by a breakout in oil but some players also headed to the sidelines ahead of the weekend.
The turnaround looks like the product of some opportunistic buying on behalf of some longer-term bulls. The pair approached support near 1.20 and it had grown extremely oversold by short-term metrics.
Taking a step back, the fall in oil prices and worries about housing leave the loonie extremely vulnerable. The BOC was incredibly optimistic this week but that leaves them with nowhere to go but down.
