USD/CAD stuck to a tight range........>

DOLLAR-CANADA: USD/CAD stuck to a tight range overnight, last C$1.2925, as

broader USD strength & soft AU/NZ data support the pair. The NAFTA negotiations

continue to draw the attention of CAD traders, with Canadian foreign minister

Freeland revealing that Canada and the U.S. are planning negotiations that are

expected to run through the night. Freeland noted that "given the extreme

intensity & the very fast pace of this conversation, we are not going to conduct

our negotiation in public." This came after Canadian PM Trudeau noted that

Canada will defend dairy supply management (despite the recent reports), while

he noted that there is a chance that a deal gets done before the weekend, if it

is in Canada's interests.

- From a technical perspective yesterday's inside day keeps the USD/CAD

downtrend intact as bears continue to target the 200-DMA (C$1.2844) and channel

base support at C$1.2844/45. Up trendline support (now resistance) and the

100-DMA (C$1.2998) will now act as resistance upon any rallies, with bulls

needing a close back above C$1.30 to keep the potential bull flag formation

alive. Canadian GDP provides the highlight today.