[Calxy]

USD wound up mildly higher, but without much participation from EUR which was net-net not on much changed, stuck around the 1.4610 level. Risk appetite does not have much of an opening momentum, with equity futures pointed just slightly downward. The general news overnight was mixed or slightly dovish, and so we
did not see much reaction net-net on EUR, but we have seen particularly sharper moves in GBP on the back of comments of the BOE Mervyn King, alluding to the potential usefulness of further rate cuts, and pushing cable to gap down from above 1.66 to below 1.65 (now settling in around 1.6430). Indeed, policy has been the story to some extent, with the RBA broadly neutral and not quite striking
as hawkish a tone as might have been expected, putting some very mild dampening sentiment on AUD overnight as well.

[Calxy]

Oil companies have been active sellers of USDCAD in the market this morning. This is typical flow that occurs in the oil patch around the 15th of each month. The other active dates are the 25th of the month and month end.