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

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