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Uncertainty over NAFTA combined.......>

DOLLAR-CANADA: Uncertainty over NAFTA combined with a broadly stronger dollar
weighed on the CAD on Tuesday, which saw USD/CAD hit a high of C$1.3208. The
pair last deals at C$1.3180, as the DXY eases back from best levels.
- The latest round of U.S.-Canada NAFTA negotiations yielded no firm outcome on
Friday, although both sides seemed to intimate that a deal was closer to hand.
Negotiations are set to resume today.
- Elsewhere eyes will fall on the BOC's MonPol decision, with the Bank seen on
hold by almost all of those surveyed. Mkts have almost fully priced in a 25bp
hike at the Bank's Oct decision, so focus will fall on the rhetoric employed &
the degree of uncertainty caused by the latest round of NAFTA talks.
- Canadian trade data will also hit today.
- USD/CAD bulls now focus on the July 20 high (C$1.3290). Bears look for a
breach of C$1.2900 to re-establish the downtrend.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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