Oil-tied FX takes another leg lower as WTI....>

FOREX: Oil-tied FX takes another leg lower as WTI has worst session in a year

-CAD and NOK were the poorest performing currencies among the majors today as

the energy complex took another large leg lower on the building of expectations

of an increase in crude supply in H2 this year. USD/CAD now targets the May

highs at C$1.2998 before any attempt on the year's best levels at C$1.3125.

-The EUR suffered further as Spain joined Italy in having political difficulties

after Spain's opposition parties manoeuvred to back a no confidence vote in the

PM Rajoy. This, twinned with a sharp widening in SP/GE and IT/GE yield spreads,

had the EUR under pressure from the get-go, sending EUR/JPY to 2018 lows.

-USD and JPY traded relatively directionlessly, taking their cues from

currencies elsewhere, with little new commentary from Fed speakers and Durable

Goods Orders for April proving uninfluential.

-GBP traded generally weaker as ONS figures showed the sharpest decline in

business investment since the Brexit vote.

-Next week likely to get off to a slow start with US and UK on holiday Monday,

before US GDP and NFP releases and the Bank of Canada rate decision.