USD/CAD momentarily spiked as high as 1.1194 as the combo of retail sales and CPI was released. The move above 1.1180 lasted only a moment as the highest year-over-year CPI reading since April 2012 dimmed the chances of a Bank of Canada rate cut despite terrible retail sales.

This is the time of month where CAD-positive oil settlement trading flows begin and with the weekend nearing (not to mention a big US-Canada hockey game today), traders were probably looking for a reason to square up.

USD/CAD fell as low as 1.1132 after the data but has quickly stabilized. Given the momentum higher and the proximity to the 1.1224 cycle high, I fully expect this will be a buying opportunity.

USDCAD 4 four chart

USD/CAD 4 four chart