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.
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