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USD/CAD - Breaks Lower after Hot Inflation and Strong Retail Sales

Canadian data was hot today:

Inflation:
CPI m/m (May): 0.5%
Forecast: 0.2%
Previous: 0.3%
Core CPI m/m (May): 0.5%
Forecast: 0.2%
Previous: 0.2%

(Source: StatCan)

Demand:
Retail Sales m/m  (Apr.): 1.1%
Forecast: 0.4%
Previous: 0.1% (revised up from -0.1%)
Core Retail Sales m/m (Apr.) 0.7%
Forecast: 0.4%
Previous: 0.2% (revised up from 0.1%)


(Source: StatCan)

After the hot Canadian data, the USD/CAD fell below its consolidation support and 200-day SMA. It is opening up the 2014-low around 1.06 and the Dec. 2013 low at 1.0560. There might be some support around the 1.0737 pivot, but if price stays under 1.09, the downside risk persists.


(usdcad daily chart, 6/20)