Canadian Dollar gains following rate decision by the BoC!

•  Tuesdays trading was one of volatility across the board despite a light US financial calendar; this time around focus was on the EUR, GBP, AUD and CAD. This resulted in a weak overall dollar performance. The Euro fell on uncertainty about Greece activating the aid package. The sterling surged as CPI beat expectations and the market re-assessed the BoE future policy. AUD surged following bullish RBA minutes and the star performer of the day, the Canadian dollar, surged against the dollar as the BoC removed the conditional commitment on low interest rates from their rhetoric. This leaves the door open for a rate hike in Canada as soon as July. The Loony subsequently traded below parity to 0.9957 from 1.0162.
•  In the US despite the light financial calendar we had a number of positive earnings reports from major fortune 500 companies. Goldman Sachs reported huge earning for Q1 of $3.3bln however we did not see an immediate follow through as the SEC law suit is keeping investors nervous about owning Goldman Sachs stock. Another star yesterday was Apple as the company posted a 90% jump in net income as Apple sold 8.8mln iphones for the quarter. Overall the SP500 closed 0.81% higher for the day and the USDJPY tracked this gain by trading back up to 93.37 from a 91.57 low.
•  In Europe we had better than expected ZEW reports for Germany, ZEW reports are leading indicators measuring sentiment and activity expectations in Germany. Despite this news the EURUSD still managed to lose some ground as concerns over the activation of the EU/IMF package made for uncertainty and the pair was sold off. EURUSD price action was between 1.3521 - 1.3397.  
•  Today the main focus will be on the UK economy and the upcoming employment report. ILO unemployment is expected to remain unchanged at 7.8% for the month of February. MPC minutes will be released also at the same time shedding some more light on BoE future policy moves. One thing is guaranteed for the GBPUSD today and that is volatility!

 Currency to watch out for: EURUSD & USDJPY

• § The EURUSD pivot point is at 1.3385 with a preference to enter into Long positions at 1.3395
• § The USDJPY pivot point is at 92.95 with a preference to enter Long positions at 93.00

 Today's calendar and market movers:

• § UK ILO unemployment for February expected at 7.8%
• § Canada Wholesale Trade for February expected at 0.7%
• § US Crude Oil Inventories for the week expected at 0.1mln

Equity Markets:

•  US equities closed positive on Tuesday with the DJIA and the SP500 closing 0.23% and 0.81% respectively.  The European bourses were positive on Tuesday with the FTSE closing 0.97% the DAX and the CAC closing down at 1.65% and 1.41%. The NIKKEI and the HSI at the time of writing is 1.71% and 0.12% respectively.