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CAD continues to struggle under.......>

DOLLAR-CANADA
DOLLAR-CANADA: CAD continues to struggle under pressure from softer oil prices,
with USD/CAD last dealing at C$1.3424, 8 pips lower on the day. Risk aversion
sparked off by U.S.-Mexico trade tensions also does not help the loonie, which
currently sits at the bottom of the G10 pile.
- On Wednesday, the rate ticked lower initially, amid positive risk backdrop
stemming from the growing mkt perception that a FOMC cut is on the table. The
rate moved away from its intraday low of C$1.3363 around the London noon, but
recovery was capped by a particularly weak ADP employment print out of the U.S.
- Subsequent slump in WTI prices coupled with broader USD demand ahead of the
WMR fix (partly inspired by better than exp. ISM non-m'fing print) dragged the
rate higher, allowing it to close 21 pips above neutral levels.
- The crush in oil prices occurred on the back of the latest U.S. DoE inventory
report, which indicated a larger than exp. build in crude stockpiles.
- Bulls look to the 21-DMA at C$1.3453, bears eye the C$1.3400 figure.
- Points of note this week include Canadian labour market data due Friday.

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