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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.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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