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CAD surges for second session as NAFTA 2.0....>

FOREX
FOREX: CAD surges for second session as NAFTA 2.0 looks a done deal
-Markets welcomed the re-branded NAFTA agreement (dubbed USMCA), with CAD
rallying sharply for a second consecutive session, pressing USD/CAD through the
200-dma for the first time since April and touching the lowest level in four
months. Revised rules surrounding automobiles, the dairy sector and intellectual
property, but the deal struck does not resolve the furore surrounding US tariffs
on steel and aluminium. USD/MXN dropped also, approaching August lows at 18.405.
-The USMCA deal underpinned risk sentiment despite a quiet Asia session (China
were absent due to market holidays), helping lift core European equities and
depress the CHF and JPY. USD/JPY managed to eke out out another YTD high,
reaching Y114.05 before easing back slightly ahead of the NY crossover. The USD
trades mixed against the rest of G10, with market focus shifting to US non-farm
payrolls Friday.
-US Manufacturing PMI, US ISM Manufacturing for September and speeches from
Fed's Bostic, Kashkari and Rosengren, BoE's Tenreyro and ECB's Villeroy are the
calendar highlights.

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