USD/CAD has shed 30 pips thus far.....>

DOLLAR-CANADA: USD/CAD has shed 30 pips thus far and trades at C$1.3042 as the

greenback retains a softer feel, while commodity-tied FX are advancing. The

loonie tops the G10 pile at typing.

- This comes after the rate dropped 10 pips yesterday. Despite ebbing lower

initially as USD continued to struggle, it pared losses subsequently as slightly

better than exp. U.S. CPI allowed it to breathe a sigh of relief. The pair then

ease off a touch into the close.

- This month has seen USD/CAD operating within a ~100 pip range either side of

C$1.3100. With the rate heading towards the lower end of this range, bears look

for a breach of the nearby C$1.3038, which marks the YtD low touched on Jul 4.

Below opens the 100-WMA at C$1.2990. Bulls keep an eye on the 200-HMA/100-HMA at

C$1.3089/91, as a breach here would place the Jul 1 high of C$1.3145 in sight.

- Canadian docket is virtually empty today.