Greek Finance Minister Varoufakis warns that liquidity is drying up in Greece
It was very quiet overnight, with no data releases and little news. However, we have a good amount of tier-1 data ahead, which will bring us a volatile end of the trading week. In the EU session, the UK will release their employment figures, followed by Euro Zone inflation numbers half an hour later. In the US session, the US and Canada will publish their latest inflation data. Canada will also release the retail sales figure for last month.
Dealers report that selling from momentum funds pushed the USD/CAD lower to 1.2180, but buying from macro funds then led to a small bounce back towards 1.22. Overall, the pair is likely to remain under pressure in the near-term. Keep an eye on oil prices, as a further rise could also accelerate the strengthening of the Canadian Dollar. Decent selling interest reported at 0.7820/30 in AUD/USD, while bids from corporate names are expected at 0.7750. Macro funds are said to have buying interest in the 0.7720/25 region.