USD/CAD Sharply Up

The USD/CAD pair reacted sharply to the disappointing news from Canada. Core Retail Sales turned out to be much lower than expected as previous data states 0.2%, expected data stood at 0.3% but real data came out to be -0.7%. The Canadian dollar was immediately sold sharply which spurred a whirlwind of volatility in the currency pairs involving CAD.

USD/CAD is up at 1.2590 from a low of 1.25 prior the release. CAD/JPY is down some half of a cent. EUR/CAD is also up substantial from 1.4760 to a high of 1.4830.

The news are still having an impact as CAD bears are heavily selling the pair by large volumes. The USD/CAD can be expected to find resistance at the area 1.2660-1.2670. If that level is passed, the area around 1.28 is the next target for the USD bulls.

Chart: USD/CAD H4