 Canadian Dollar suffers heavy selling in early US session as the large deceleration in CPI to 2.2% raising doubts on whether BoC would still hike next week. Meanwhile Yen and Swiss Franc are among the weakest ones. Widening of German-Italian spread is not translated into selloff in European stocks nor any meaningful movements in the forex markets. New Zealand Dollar and Australian Dollar are the strongest ones, with help from reversal in Chinese stocks despite GDP miss. Technically, USD/CAD's strong break of 1.3081 resistance is taken as a solid sign of bullish trend reversal. Focus is turned to 1.3225 resistance for confirmation. Euro is consolidating above yesterday's low against Dollar and Yen. While there is no extended selloff in Euro, it remains technically vulnerable for another fall. AUD/USD, despite today's rebound is still holding in tight range below 0.7159 temporary top. In Europe, FTSE is trading up 0.37%, DAX is down -0.16% and CAC is down -0.66%. German 10 year yield is down -0.005 at 0.416. Italian 10 year yield is up 0.059 at 3.737. That is, German-Italian yield spread is now above 330. In Asia, Chinese stocks staged a strong rebound after initial selloff. The Shanghai SSE dipped to 2449.20 but ended up 0.26% at 2550.47, reclaiming 2500 handle. Hong Kong HSI was also lifted and rose 0.42% to 25561.40. However, Singapore Strait Times fell -0.23% while Nikkei lost -0.56%. Japan 10 year JGB yield dropped -0.0044 to 0.151. | 
