CPI as expected but remains well below targets
The Canada CPI came in as expected but the YoY numbers remain well below targets for the Bank of Canada. The USDCAD has moved to new session highs (lower CAD). The pairs trading at 10 day highs.
Technically, the pair not only moved above the week high at 1.2789, but also cracked the 50% retracement of the moved down from the October 31 high. That will came in at 1.27898 and the break. That break triggered stops and a run higher.
What next?
The swing high from Nov 7th dovetails the 61.8% retracement at 1.28192. That is the next key target. I would expect some stall at least on the first look.
PS as Mike pointed out earlier there is option expires at 1.2800-10 which is in play. The high for the day has just stalled at 1.28149 (695M expire at 10 AM ET). Someone big out there may be pushing higher to have those options expire at/near 0.
