USD/CAD sits at C$1.3076, nearly......>

DOLLAR-CANADA: USD/CAD sits at C$1.3076, nearly unch. at writing, after shedding

23 pips yesterday as oil prices advanced, while broader risk appetite picked up.

- The rate ticked higher in Asia hours yesterday but pared gains into Europe on

the back of fluctuations in broader sentiment. A slide in U.S. hours was driven

by the latest DoE report, which showed a surprise drop in U.S. crude stockpiles.

- The YtD low of C$1.0316, touched on Jul 19, remains the key downside target.

Bulls look for a return onto the C$1.3100 handle before setting their sights on

the Oct 18 high and key near-term resistance at C$1.3146.

- PM Trudeau refused to seek a coalition partner after his Liberal Party was

reduced to a minority government, deciding to govern on a case-by-case basis

instead. He added that once parliament returns he will try to implement his

campaign pledge to increase the basic personal income tax deduction.

- The BoC will announce its monetary policy decision next week.