USDCAD has failed to challenge Asia...>

DOLLAR-CANADA: USDCAD has failed to challenge Asia lows and holds toward the

upper end of its narrow C$1.2903-35 range. Focus turns to Canadian GDP and

payroll employment data at 1230GMT. GDP q/q annualised for Q1 was 1.3% but is

expected to be much stronger for Q2, with the MNI median at 3%. The payroll

employment data is for the month of June and had a y/y average weekly earnings

figure of 2.9% for May. Markets will pay close attention to the release with RBC

noting it is one of the most anticipated quarterly GDP prints in some time,

serving as an important component into the BoC's rate decision on Sep 5. They

forecast a 3.0% annualized GDP gain in Q2, with a 2.0pp add from net exports -

after three consecutive detractions - a main driver.