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

DOLLAR-CANADA
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.

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