MXN & CAD provided the fireworks......>

DOLLAR-CANADA: MXN & CAD provided the fireworks overnight, turning bid on

headlines from Politico suggesting that the Trump administration is to announce

on Thursday that it has reached a 'handshake' deal with Mexico in NAFTA talks.

The story has been played down/denied by Mexican & Canadian source reports with

USD/CAD unchanged last at ~C$1.3035. From a technical perspective, yesterday's

break of the Aug 15 low and subsequent reversal to C$1.3014 has seen bears

remain in charge. Double-bottom support has now formed ahead of the key C$1.30

level. A move below here would put trendline support from the Feb lows at risk,

as well as the 100-DMA and August lows (C$1.2962). A break through these key

levels would point to a medium-term trend change. A topside break of channel

resistance is needed to suggest a bull flag breakout is in play.

- It is worth noting that there is a story in the Globe and Mail that CA foreign

affairs Min Freeland's office is publicly voicing concern about another jailed

female civil-rights activist in Saudi Arabia.

- CA focus will continue to fall on the ongoing NAFTA talks between the U.S. &

Mexico in Washington, with CA retail sales also due later today.