USD buoyed by firmer UST yields, soft.........>

FOREX: USD buoyed by firmer UST yields, soft Canadian CPI pressures CAD.

- USD demand was the overriding theme in NY, UST yields supported which saw the

10y trade above 2.94%. As a result most of the majors suffered, before staging a

minor recovery late in the session.

- GBP continued its descent off Tuesday's post Brexit high ($1.4377) to $1.4007,

down 1.44% on the week. Despite the GBP weakness, Eur/Gbp failed to benefit with

added weight from Eur/Usd to hold a narrow 50 pip range.

- Eur/Usd moved back under $1.23 on persistent USD demand, rate touched pullback

lows of $1.2250 after a BBG source story that said the ECB to have no talks on

interest rate path after QE. Eur later recovered to the $1.2285/90 area.

- The release of soft Canadian CPI with added USD demand spiked Usd/Cad through

C$1.27 to extended highs of C$1.2749. Commodity based currency pairs struggled,

NZD & AUD were the biggest G10 losers against the USD. Aud/Usd touched pullback

lows of $0.7655, before RHS interest at the WMR fix squeezed to $0.7678. NZD too

encountered pressure to NZ$0.7201, key support remains at NZ$0.7154 (Mar21 low).

- Euro area flash PMI's the main highlight Monday morning.