CAD further extends overnight gains...>

DOLLAR-CANADA: CAD further extends overnight gains through the 50% retracement

level to C$1.2953 and holds firm at typing. NAFTA talks remain front and centre

following yesterday's Bloomberg headlines that said Lighthizer and Freeland were

planning talks, scheduled to begin today. It was also reported that

Representative Scalise warned patience for Canada is wearing thin, while

Canadian PM Trudeau reiterates that he would rather have no deal at all then a

deal that is detrimental to Canada. Expect headlines to dominate price action. 

Downside support is seen at C$1.2923/21 (1.0% envelope 10-dma/1.618% swing

C$1.2976-1.3065), stronger on approach to the C$1.2900/05 area (C$1.2903 - Aug30

low). Below here and bears target the 200-dma & channel base support at

C$1.2864/46.