CAD turns the tables as BoC and oil prove.....>

FOREX: CAD turns the tables as BoC and oil prove supportive

-The Canadian currency had several tailwinds Wednesday, which managed to buck

the recent bullish trend in USD/CAD and reverse the pair back below the 100- and

50-dmas. Firstly, the Bank of Canada, while keeping rates unchanged, were

surprisingly upbeat on the domestic economy, highlighting that inflation metrics

are consistent with an economy running 'near capacity'. CAD got a further boost

as Brent crude futures added over 4% as markets remain volatile ahead of the

OPEC meeting. USD/CAD showed below the C$1.32 handle for the first time since

mid-November.

-GBP extended recent outperformance, rallying through a decent bull trigger

ahead of $1.31. Supportive polling and a continued swing in betting odds toward

a Conservative election majority was largely responsible, but the pair clearly

remains highly sensitive to political risk over the next ten or so days.

-Australian trade balance & retail sales, German factory orders, weekly US

jobless claims and US trade balance all take focus Thursday. Speeches from ECB's

Makhlouf and BoC deputy governor Lane are also on the docket.