Some traders have pointed out to me that USD/CAD moved before the CPI and retail sales numbers were released. It’s not wholly unusual for the market to move just before economic data when the market is thin but in this case USD/CAD surged before the data, which is exactly what you’d expect before the inflation numbers were soft.

Statistics Canada has launched investigations in the past after similar moves but never got to the bottom of them.

USDCAD fishy move ahead of CPI

USDCAD fishy move ahead of CPI

The selling immediately after the data also indicates some traders with inside info might have quickly cashed out an early Christmas present.