It was all eyes on NAFTA 2.0 talks............>

FOREX: It was all eyes on NAFTA 2.0 talks overnight, with a tri-lateral trade

agreement between the U.S., Canada & Mexico now set to be signed off at the end

of November after an agreement was struck late Sunday. The U.S. noted that steel

& aluminium tariffs on Canada are a completely separate matter. While there are

several marginal adjustments that have been made that favour the U.S. CBC

sources noted that "Canada got what it wanted on cultural exemption."

- USD/CAD & USD/MXN were lower from the off on weekend reports pointing to the

likelihood of a deal being struck. USD/CAD has breached the Sep 20 low & 200-DMA

(C$1.2885/69), with bears now looking to channel base support (C$1.2792). Bulls

need to reclaim the 100-DMA (C$1.3054).

- Elsewhere markets were very much in holiday mode with China & HK out. The USD

edged higher vs. the majors ex. CAD allowing USD/JPY to reach fresh YtD highs

(Y113.96), further aided by a relatively risk-on feel owing to NAFTA 2.0.

EUR/USD was unreactive to weekend comments from ECB's Coeure & Rehn.

- Focus Monday shifts to PMI data & speeches from Fed's Bostic, Kashkari &

Rosengren, ECB's Villeroy & BoE's Tenreyro, as well as the UK Tory Party conf.