USD/CAD advanced 25 pips overnight,...>

DOLLAR-CANADA: USD/CAD advanced 25 pips overnight, breaching its 55-DMA at

C$1.3316, and last trades at C$1.3327, as WTI ebbed ~$0.30 lower. Broader USD

strength also helped the move lower.

- Worth reminding that Canadian Tsy Board President Philpott quit PM Trudeau's

cabinet yesterday, citing the SNC-Lavalin scandal as a reason for her

resignation, while the Sino-Canadian relationship continues to be tested by

political strains and the escalation of matters surrounding Huawei.

- The initial upside target comes at C$1.3348, which represents the upper 1.0%

10-DMA envelope. A break above would bring that cloud base at C$1.3356 into

play. Meanwhile, bears look to return below the 55-DMA before challenging the

50-DMA, located at C$1.3292.

- The Canadian docket this week is headlined by the BoC MonPol decision due

tomorrow, while domestic labour mkt data comes out on Friday. Elsewhere, BoC Dep

Gov Patterson will speak on Thursday.