The loonie eked out some gains........>

DOLLAR-CANADA: The loonie eked out some gains overnight, with USD/CAD dropping

17 pips. The rate last deals at C$1.3071, hovering just above its session lows.

- Bears need a dip below the 100-HMA at C$1.3050, which would give them a green

light for targeting the Jul 12 YtD low of C$1.3018. Bulls need the rate to

breach the Jul 11 & 16 highs of C$1.3092, followed by C$1.3100. The 21-DMA at

C$1.3115 provides the next layer of resistance above.

- This comes after USD/CAD added 39 pips as WTI prices declined on the back of

U.S. State Sec Pompeo's remark that Iran is ready to negotiate with the U.S.

(Teheran later pushed back against his comments). Meanwhile, data-driven USD

strength further supported the rate.

- The BoC said on Tuesday that it is taking over a new risk-free overnight rate,

which could become the benchmark for Canada's loans and derivatives mkt.

- Canadian CPI numbers will be closely watched later today, while Friday's

release of retail sales data shouldn't be missed either.