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Canada reported a drop of 0.3% in the volume of retail sales in  September,  contrary to a rise of 0.1% expected. Also core retail sales fell short of expectations with a slide of the same scale, contrary to a rise of 0.2% predicted. For USD/CAD, it was a  one-two punch: US inflation came out slightly better than expected and the greenback is strengthening across the board.

USD/CAD is  shooting higher, edging close o resistance at 1.1280, which was the previous 2014 high. On the way, it broke above resistance at 1.1240.

The round number of 1.13 is getting  close. Further in the distance, we have 1.1384 which is the 5 year high for the pair. Support is found at 1.12.

For more, see the C$ forecast. Here is the chart showing the strong move higher:

Canadian dollar down against USD on weak Canadian retail sales strong US inflation October 22 2014

 

The Bank of Canada  is set to release its rate decision at 14:00 GMT. While no change is expected from Poloz and co., the BOC could change its forward guidance. The central bank is  currently neutral on the fate of the next rate move in Canada.