FX markets took a breath on Wednesday as......>

FOREX: FX markets took a breath on Wednesday as the Italian political stalemate

continued, JPY remained strong via the crosses.

- Commodity based currencies witnessed decent gains across the board following

the strong rally in oil prices. NZDUSD had a brief look at 0.7000, while AUDUSD

topped out at 0.7584.

- The BoC left rates unchanged as widely expected, but did remove its 'cautious'

reference re: rates, while noting that activity in the first quarter appears to

have been a little stronger than projected. USDCAD touched lows of 1.2836 on the

hawkish statement.

- Improving risk appetite allowed both EUR & GBP to register decent gains vs.

USD. EURUSD remains comfortably above 1.1640 after Italy's 5-Star party called

for Savona to withdraw his candidacy for Economy Minister to allow a gov't to be

formed. EUR ignored late reports suggesting that the The White House is not

planning on extending the EU's exemptions from steel & aluminium tariffs. GBPUSD

briefly made a show above 1.3300, before EURGBP short covering weighed.

- SEK was top of the G10 pile after a strong Swedish Q1 GDP release.