There have to be some flows going through
There was some tomfoolery going on in USD/CAD today.
Someone was sitting on the USD/CAD bid for about five hours, from the start of New York trade until 1 pm ET when the pair hit a high of 1.2519.
The mystery bid started early in the day ahead of US CPI and retail sales report That climb above 1.25 was wiped out by the soft inflation data and the pair hit a session low at 1.2453.
Then the bid reappeared and continued until the pair hit some stops after breaking the earlier high and climbed up to 1.2520. Then the bid promptly vanished and since then USD/CAD has sagged back to 1.2479.
On net, this was almost surely some kind of deal that needed to be done.