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.