The big news seen overnight was the energy sector creeping higher as shares broke through January highs on the rally in crude oil prices.
Squawk / 13 July 2016 at 14:17 GMT
Head of FX Strategy / Saxo Bank
Bank of Canada decision: market sees this as less dovish than expected and CAD plays a bit of catchup with its commodity dollar peers. The market was marking Canada's short rates a few basis points lower earlier today and this statement has seen a recovery to the highs of the day.

As you can see from the comparison of the May and July Bank of Canada statements below, a bit more revision from meeting to meeting than we see from the FOMC, for example. There are a number of very positive comments on global growth prospects and forecast for strong Q3 rebound in Canada, but also a point or two of concern, especially that "financial vulnerabilities are elevated and rising, particularly in the greater Vancouver and Toronto areas" (think housing).

The reaction is a disappointment for USDCAD bulls looking for 1.3000 support to remain intact and if today's move lower sticks and closes south of 1.3000, the focus could shift to the recent 1.2832 lows and the rising line of consolidation.
John J Hardy John J Hardy
Bank of Canada Governor Poloz out speaking 1515-1645 GMT after the statement release.


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