USD/CAD down to 1.2561 from a high of 1.2663
Canadians earned more in the second quarter and decided to spend it. Consumers were the biggest driver of the best quarter since 2011 and the best two-quarter period since 2002.
USD/CAD dropped on headlines showing 4.5% growth compared to 3.7% expected. As traders sifted through the details of the report, the selling in the pair continued.
The first support level will be Tuesday's high of 1.2550.
In the bigger picture, this is going to fuel talk of a Bank of Canada rate hike as soon as next week so I expect the selling in USD/CAD to continue unless the US dollar can find a bid of its own.
With all the interest in USD at the moment, the better trades in CAD may be on the crosses. CAD/JPY, in particular, is at a four-week high.
