USD/CAD jumps
USD/CAD hit a fresh six week high above 1.3100 after surprisingly weak retail sales and CPI numbers. Retail sales fell 0.4% ex autos in August compared to a 0.1% rise expected. CPI was also down 0.4% m/m compared to a 0.1% rise expected.
The move in the currency was swift as USD/CAD jumped as high as 1.3120 from 1.3035 before the data.
The softer numbers ease pressure on the Bank of Canada to deliver a hawkish message at Wednesday's meeting. A hike is still priced as a virtual certainty but the market is struggling to handicap what comes next.
The odds of a back-to-back hike in December are at 12% while another hike in December is at 68%. A day ago, those numbers were at 48% and 68% respectively. So the market is still pricing in two hikes by early January, just not as quickly.
via : forexlive
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