The USD is retracing overnight after strong gains yesterday.The Yen rallied overnight on solid inflation numbers (headline was 2.4% YoY.DEC) and supportive month end flows with JPY trading better by +.53% ( 117.62). Commodity markets saw heavy casualties yesterday,with losses in energy and precious markets and this coupled by bearish comments and expectations on policy actions by the RBNZ & RBA respectively led to big losses in commodity currencies,namely the NZD,AUD & CAD.Inflation numbers out of the Eurozone while disappointing( Flash CPI Eurozone -0.6% versus exp -0.5%, prev -.2%) have had a muted impact on the currency which is still holding onto recent gains following last weeks weakness following the QE announcement by the ECB.This morning brings GDP data,Chicago PMI and confidence measures from the University of Michigan in the US and monthly GDP data in Canada.

CAD RANGE 1.2676 -1.2608 CURR 1.2669 RES 1.2690 1.2767 SUPP 1.2525 1.2435