USD/CAD continues to operate at.......>

DOLLAR-CANADA: USD/CAD continues to operate at depressed levels after taking a

hit on the back of the weekend drone attack on major Saudi Aramco facilities,

resulting in the largest single disruption for oil markets on record, per BBG.

Broader mkt reaction has been moderated as U.S. Pres Trump authorised releasing

U.S. petroleum reserves to stabilise mkts if needed, but CAD remains bid.

- Today's move wiped out Friday's rally, capped only at the 61.8% fibo

retracement of the Sep 3-Sep 10 fall (C$1.3288). The loonie was the worst G10

performer on Friday; slightly softer oil prices may have pressured the currency,

albeit there was little of note in the way of headlines/data.

- USD/CAD last seen at C$1.3222, 65 pips lower on the day. Bears look to take

out the 50-DMA, which intersects at C$1.3206, as well as the psychological

support at C$1.3200 which registered the low of Aug 2. A clean break and

consolidation above the Sep 5 high of C$1.3246 would return bullish focus to the

100-DMA at C$1.3275.

- Canadian docket this week features domestic CPI (Wednesday) & retail sales

(Friday)