:: US Dollar vs Canadian Dollar: USD/CAD has returned to the bottom of our recent range with CAD finding support from market sentiment, cross activity & oil prices.  Having all these positive factors CAD has still been unable to break below the .9925 area which highlights the area even further.  A break below there will still find strong support at .9880.  Canadian inflation data came in a touch stronger than expected but with the FED’s pledge to hold rates low until nearly 2015 the BoC will have very little wiggle room on their side unless a disproportionate chasm appears between actual inflation & the central bank’s targets.

Expected range today 0.9925 to 1.0045

:: Canadian Dollar vs Euro: Yesterday’s news that the ECB was swapping Greek bonds for EFSF bonds helped usher in a new wave of risk positive sentiment. A final package is supposed to be finalized on Monday & will likely include an escrow account that will have enough cash to pay 9-12 months of Greek debt with provisions to cut government spending if a shortfall appears.  A formal private sector involvement (PSI) offer from Greece is expected later next week.

Expected range today 1.3044 to 1.3143

:: Canadian Dollar vs British Pound, Australian Dollar and New Zealand Dollar: Both positive UK Retails Sales numbers, coming in at a healthy 0.9%, and Canadian Core CPI numbers, also better-than-expected at 0.2%, have kept the pair range bound in North American open.  The pair is currently trading at the 1.5756 levels this morning.  The Australian Dollar is also weaker against the Loonie on the heels of positive Core CPI numbers, currently exchanging hands at the 1.0717 levels.  With the RBA's surprising decision to maintain rates earlier this month, next Mondays Monetary Policy Meeting will provide insight into conditions that influenced RBAs decision.  The New Zealand Dollar has also dropped against the Loonie this morning, currently trading at the 0.8331 levels and remains range-bound within the weeks trading range.

:: Data Releases:
AUD:          No data expected today
CAD:          Core CPI, CPI, Leading Index
EUR:          German PPI, Current Account
GBP:          Retail Sales
JPY:           No data expected today
NZD:          No data expected today
USD:          Core CPI, CPI, CB Leading Index