CAD has come under pressure in........>

DOLLAR-CANADA: CAD has come under pressure in early dealing this week, after the

latest round of U.S.-Canada NAFTA negotiations yielded no firm outcome, although

both sides seemed to intimate that a deal was closer to hand. The relevant

parties will reconvene on Wednesday of this week. U.S. Pres. Trump added fuel to

the fire over the weekend, stressing that "there is no political necessity to

keep Canada in the new NAFTA deal. If we don't make a fair deal for the U.S.

after decades of abuse, Canada will be out. Congress should not interfere with

these negotiations or I will simply terminate NAFTA entirely & we will be far

better off." USD/CAD last ~C$1.3055, initial resistance noted at Friday's

intraday high (C$1.3089), followed by the 50-DMA (C$1.3097).

- Wednesday's BOC decision headlines the CA docket this week, with the Bank seen

on hold by almost all of those surveyed. Mkts have almost fully priced in a 25bp

hike at the Bank's Oct decision, so focus is likely to fall on the rhetoric

employed & the degree of uncertainty caused by the latest round of NAFTA talks.

The Canadian labour market report will hit on Friday, with BoC's Wilkins due to

speak on the same day.