Decent pick up in both volumes and....>

DOLLAR-CANADA: Decent pick up in both volumes and price action in the pair

following the trade tariff delay headlines. The pair briefly showed below the

1.32 handle, with bears clearly looking to establish a base and working in

favour of a market that remains net long CAD (as per the most recent CFTC

numbers). Next support seen at the 50-dma at 1.3186, below which markets will

eye the 61.8% Fib or the 1.3016-1.3345 move at 1.3142. Larger expiries rolling

off on Friday could trim ranges going forward, with 1.3100 seeing $1.55bln

expiring and 1.3180 marking a $735mln expiry.

-Similarly, USD/CAD options markets are trading well, with activity around 25%

above average for this time of day. The day's put/call ratio sits broadly

neutral, with decent interest noted in 1.3420 calls and 1.32, 1.3110 put

strikes. One of the more interesting structures crossing was consistent with a

$100mln 1.3110/1.3420 strangle rolling off on September 13th (and therefore

capturing the Sep4 Bank of Canada rate decision).

-There's little on the calendar going forward this week, with the next tier 1

release on Aug 21st, with the release of July CPI.