Soft UK/Eurozone inflation, BoC neutral.......>

FOREX: Soft UK/Eurozone inflation, BoC neutral rate hold but dovish Poloz

remarks hit the CAD

- USD supply at the NY crossover saw both EUR & GBP fade post inflation losses.

Having earlier touched pullback lows of $1.4173, Gbp/Usd recovered to $1.4246

but failed to extend gains. Eur/Usd encountered stiff resistance ahead of

$1.2400, formed a double-top pattern at $1.2397 before drifting lower.

- As expected the BoC left rates on hold with the statement seen as neutral. The

central bank's caution with respect to future rate hikes saw Usd/Cad move

through the 200-dma to C$1.2635. Dovish Governor Poloz remarks that said

interest rates may need to remain below the neutral range and elements of slack

in the economy further pressured the CAD to C$1.2660.

- Brent hit fresh 3-year highs after the larger-than-expected inventories

drawdown, Aud/Usd squeezed to $0.7798 (100-dma) before fading.

- Eur/Chf continued its ascent to Chf1.2000, printing highs of Chf1.1987.

- NZD CPI kicks off the data release at 2245GMT, followed by Australian Labour

data at 0130GMT. UK Retail Sales the main Euro highlight tomorrow at 0830GMT.