A softening in the N.Korean stance....>

DOLLAR-CANADA: A softening in the N.Korean stance Tuesday prompted a sharp move

back into risk assets, which in turn dropped Usd/Cad back through support at

C$1.2925/20, after rate had traded to C$1.2995/1.3001 Tuesday/Monday

respectively. The quick move lower was driven by stops, as spec longs were

squeezed out, the rate touching a low of C$1.2863. Gary Cohn resignation after

the N.American markets closed Tuesday saw risk-off plays back to the fore, Cohn

known to support globalisation and was anti tariffs, which sent rate back up to

C$1.2960 in early Asia though traders noted that market was thin. Rate dropped

back to C$1.2916, the recovery in Europe seen slow as it edges back to C$1.2941.

Domestic focus seen on the BOC announcement today though market generally

expects the Bank to remain unchanged at 1.25%. Interest more in the accompanying

statement, could be cautious due to mixed economic data which is seen pointing

to a slowdown in the pace of growth, along with trade uncertainty due to Trump

proposed tariffs(RBC).