Tuesday saw Westpac recommend a.......>

DOLLAR-CANADA: Tuesday saw Westpac recommend a long USD/CAD position with an

entry point of C$1.3085, target of C$1.3285 and a stop at C$1.3025.

- Westpac noted the "CAD was the strongest G10 currency in June but prospects

for further USD/CAD declines face tougher technical resistance into C$1.30, the

area coinciding with a range of key supports. BoC rate cut pricing remains very

guarded; only 11bp in cuts priced to Dec '19, less than the Fed (-64bp), the

RBNZ (-40bp), the RBA (-22bp), the ECB (-16bp), and even the SNB (-18bp) & the

BoE (-14bp). Firming inflation & a decent BoC biz survey will encourage the BoC

next week to reiterate an optimistic tone but global risks have grown & the Bank

may well amplify these concerns. USMCA passage faces a tougher slog on both

sides of the border - writs for Canada's elections likely issued mid-Sep & if

not passed by then the next Parliament will need to take up USMCA. House Leader

Pelosi is still fending Democrat concerns. "Side letters" may be added to the

Bill to assuage Democrats but if not addressed in the next several months the

USMCA's fate in Congress increasingly approaches 2020 election considerations.

IMM specs have sharply cut net CAD shorts in the last week."