USD/CAD edged lower overnight,........>

DOLLAR-CANADA: USD/CAD edged lower overnight, after C$1.3200 capped the cross on

Monday. The rate last deals at C$1.3140.

- The U.S.-Canada NAFTA talks resume today, with the clock seemingly ticking to

get a deal done. USD/CAD virtually ignored an article in the FT which suggested

that Mexico stands ready to move into a bilateral agreement with the U.S. if the

U.S. and Canada cannot reach a deal. Of course this was somewhat of a given.

- From a technical perspective, bulls require a close above the C$1.3200, which

has proven difficult to overcome in recent sessions. The July 20 high (C$1.3290)

provides the next level of resistance above the figure. Bears need a break of

C$1.2900 to re-establish the downtrend.

- Trade talks/sentiment surrounding the matter are set to dominate price action

for the remainder of the week.