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USD/CAD experienced a rather..........>

DOLLAR-CANADA
DOLLAR-CANADA: USD/CAD experienced a rather limited session, and last deals 10
or so pips softer at C$1.2806, with C$1.2800 providing a base overnight.
- CAD rallied sharply vs. all other G10 FX on Monday, topping the table for a
second consecutive session, following the affirmation of a trilateral trade deal
between the U.S., Mexico & Canada. USD/CAD broke comfortably below the 200-DMA
(C$1.2869), closing below that particular average for the first time since
April. The rate briefly dealt below channel base support (C$1.2792), but failed
to close below, with USD/CAD bears now eyeing the mid-April lows (C$1.2528) as a
longer-term target. Bulls need to reclaim the 100-DMA (C$1.3054).
- One of our POV's noted that USD/CAD's risk reversals curve shows hedgers
believe the current CAD rally will provide near-term relief for the currency,
but they believe that the latest news flow provides no change to the pair's
medium- or long-term outlook.
- In politics a centre-right party has won a majority in local Quebec gov't.
- Highlights on the CA docket this week include Ivey PMI & trade data, as well
as the Canadian labour market report.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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