USD/CAD surged through the 2013 high of 1.0421 after soft inflation data threatened to keep the Bank of Canada on the sidelines longer. Inflation rose 0.7% in May from last year, short of expectations for a 0.9% rise.
The Canadian dollar has fallen for 6 consecutive days, including a 2.5 cent fall since the Fed announced a path to tapering.
USD/CAD also easily cut through the 2012 high of 1.0443, setting off another round of stops. The 2011 highs of 1.0524 and 1.0658 are now in the cross-hairs. The Canadian dollar has been a solid outperformer in the recent rout on commodity currencies but it could finally be losing its luster.
USDCAD weekly chart
