The USDCAD has bounced solidly off its intraday lows after the Canadian Retails Sales report showed a surprising decrease of -0.2%, which was lower than the 0.0% that economists had predicted. The Canada Retail Sales also disappointed the markets after it came in at -0.1%, which was far lower than the 0.4% growth that analysts had predicted. However, market response is somewhat muted as another major economic indicator is scheduled to hit the markets shortly.
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The USDCAD is now 30 pips up from its intraday low of 1.3071 on the news, and continues to show signs of further upside push. This will bring some intraday relief for the pair which has lost 270 pips since its last multi-month highs of September 3.
However traders need to be reminded that the Bank of Canada Business Outlook Survey is to be released at 1.30pm GMT (roughly 45 minutes from now). This is a high-impact news release which may alter the price action of the USDCAD and change the market sentiment. This report will be an important read as it will paint a picture of the thinking of the Bank of Canada going forward as regards its monetary policy.