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USD/CAD continued its bullish.........>

DOLLAR-CANADA: USD/CAD continued its bullish reversal on Weds following
Tuesday's strong rebound from the 100-DMA. FT reports that Saudi will sell off
Canadian assets further pressured the loonie to C$1.3120, before staging an
impressive recovery to C$1.3007 on realisation that the absolute impact maybe
quite limited and reports suggesting that Canada could re-join the NAFTA
negotiations as soon as next week. USD/CAD last C$1.3016, bulls need a close
above C$1.3050 to continue the uptrend & challenge the July 24 high at C$1.3191.
A break below C$1.2962 would now be required to trigger a bearish signal.
- There was been little reaction in the CAD after Mexico's economy minister
Guajardo stated that he is "definitely encouraged to keep on working, covering
all the items that we have to cover" for NAFTA talks. Guajardo went on to note
that the talks are moving from less complex issues to more complex matters.
Focus still on the Saudi-Canada situation, Saudi has said that Aramco's
relations with Canadian customers is not altered by the spat. Canadian PM
Trudeau has stated that he will keep pressing Saudi on civil liberties but did
note that the kingdom had made some progress on human rights.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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