The European session was extremely uneventful as German GfK Consumer Confidence was the only timetabled release, and markets largely ignored the number. GBP provided the only noteworthy movement in the morning as some profit-taking from Friday's dramatic sell-off pushed GBPUSD from 1.6252 to 1.6396, causing it to be one of the best performers on the day.

In the afternoon BoC's Carney was billed to speak in Montreal and after last week's quotes that mentioned possible intervention to curb CAD strength, USDCAD rallied to 1.0590 in anticipation of further verbal intervention or elaboration of his earlier comments. This however, did not materialize and USDCAD sold off quickly to 1.0530 soon after, as speculators who had pre-empted CAD-specific rhetoric exited their intraday positions. Since then we have however seen USDCAD rally hard to touch 1.0646; driven by a late wave of USD strength that has also pushed EURUSD back to lows of 1.4885 and USDCHF above 1.0150. The move has been attributed to an aggressive sell-off in equity markets on high volume - equities both in the US and across Europe are lower on the day, led primarily by banks and insurance names. Bank names have struggled amid speculation home-buyer tax credits will soon be phased out, and the latter on ING news that it will sell shares in order to finance the repurchase of securities held by the government.

In unison with the move in EURUSD, gold has slumped to $1041.50 in afternoon trading, down over $18 from its intraday highs of $1059.90, and silver down 2% on the day at $17.40. Crude has also given back its early gains that saw it touch $81.50, and is now trading at $78.60.

EURUSD
R 2: 1.5346
R 1: 1.5060
CURRENT: 1.4900
S 1: 1.4876
S 2: 1.4830

GBPUSD
R 2: 1. 6570
R 1: 1.6484
CURRENT: 1.6325
S 1: 1.6221
S 2: 1.6130

USDJPY
R 2: 93.10
R 1: 92.50
CURRENT: 92.05
S 1: 90.60
S 2: 89.70

AUDUSD
R 2: 0.9476
R 1: 0.9347
CURRENT: 0.9185
S 1: 0.9113
S 2: 0.8985

USDCAD
R 2: 1.0670
R 1: 1.0650
CURRENT: 1.0630
S 1: 1.0520
S 2: 1.0380

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