USD/CAD has been the early mover......>

DOLLAR-CANADA: USD/CAD has been the early mover this week, with the CAD

benefiting from reports/comments pointing to the nearing of a NAFTA deal,

however various officials have noted that some hurdles still remain.

- BBG sources have indicated that the Trump admin is growing increasingly

confident that a trilateral NAFTA deal may be published by the Sunday midnight

deadline (ET).

- U.S. TR Lighthizer indicated that there will be news on NAFTA over the next 24

hours, but in a Sunday address highlighted that dairy & Chapter 19 issues

remained sticking points.

- USD/CAD last deals at C$1.2850, off of lows of C$1.2837.

- This comes after CAD was comfortably the best performer in G10 FX on Friday,

underpinned by the near 2% rally in WTI futures as the rally in energy

re-correlated with CAD.

- The pair has breached the September 20 low & 200-DMA (C$1.2885/69), with bears

now looking to channel base support (C$1.2792). Bulls need to reclaim the

100-DMA (C$1.3054).