USD/CAD last seen at C$1.3440,........>

DOLLAR-CANADA: USD/CAD last seen at C$1.3440, virtually unch. on the day, after

the rate rallied 92 pips Weds, as several factors conspired against the Loonie.

- The Asia-Pac session saw CAD pressured by the spillover from AUD weakness into

the broader commodity-tied FX space, while Sino-Canadian tensions and Canada's

domestic political situation continued to generate worries.

- The rate jumped after the BoC delivered its MonPol decision. The Bank left its

rate unch., but indicated increased uncertainty re: the timing of future hikes

and removed a reference to the need for rates to reach neutral over time.

- CAD was further pressured post-BoC, as WTI declined on the back of a larger

than exp. build in U.S. crude oil inventories reported by the U.S. EIA. As a

result, USD/CAD peaked at C$1.3457, the highest level since early Jan.

- Bulls look to the upper Bollinger band (3%) at C$1.3475, ahead of the Jan 4

high of C$1.3496; bears focus on the upper Bollinger band (2%) at C$1.3400.

- BoC Dep Gov Patterson will speak later today, as will PM Trudeau as he aims to

tackle the political headwinds he is facing, while the Canadian labour mkt

report is due on Friday.