Soft GDP release pressures CAD - CAD & JPY....>

FOREX: Soft GDP release pressures CAD

- CAD & JPY underperformed in G10, while weak ISM mfg failed to check dollar

gains.

- CAD sits bottom of the pile with losses of 0.79% against the dollar. Soft

Canadian 4Q real GDP was the catalyst after it came in well under expectations

of 1.0% at 0.4%. USDCAD spiked above C$1.32 with gains extending through 1.3280.

- JPY struggled throughout the session with losses against most of G10, bar CAD.

USDJPY is targeting a close above channel top resistance at Y112.00, while

EURJPY extended the uptrend to print fresh ytd highs of Y127.50.

- The USD registered solid gains despite the release of soft ISM mfg which saw

declines in the headline number & new orders component. UST yields firmed above

2.74% to generate gains of +5% on the week, while gold traded back under $1300.

- EURUSD once again failed above $1.14, before it eased back through the 100-dma

towards 1.1370/75.

- GBPUSD touched post ISM mfg highs of $1.3286 but drifted ahead of and through

the WMR fix toward 1.3200.