USD/CAD remains well supported just above 200DMA at 1.2500, loonie shrugs off downbeat retail sales, house price data

USD/CAD remains well supported to the north of its 200DMA at 1.2500 as risk-off flows limit loonie upside.
Weak Canadian Retail Sales and New House Price Index data has not moved the loonie.
Markets are focused on next week’s Fed and BoC meetings.
USD/CAD has remained well supported to the north of its 200-day moving average at bang on 1.2500 as risk-off flows in global equities and profit-taking in crude oil limits demand for risk/commodity-sensitive currencies like the loonie. At current levels near 1.2520, the pair is trading with very modest gains of about 0.1% on the day, with the looie holding up better on the session in comparison to its antipodean dollar peers.

But the pair continues to trade well within the 1.2450-1.2550 range that has prevailed over the past six or so sessions. The US dollar’s broad recovery this week has prevented the Canadian dollar from taking advantage of higher crude oil prices and heightened expectations for imminent policy tightening from the BoC.