USD/CAD ticked up in early dealing....>

DOLLAR-CANADA: USD/CAD ticked up in early dealing on Tuesday, aided by some

modest USD strength across the board, before the rate struggled above its 55-DMA

(C$1.3112), to last trade back at C$1.3095. Bulls need a clean break above the

aforementioned 55-DMA to open up a challenge of the 50% retracement of the move

from C$1.3386-C$1.2888 (C$1.3137). Conversely bears will look for a break below

the overnight low (C$1.3090) to target Monday's low (C$1.3045).

- The latest round of U.S.-Canada NAFTA negotiations yielded no firm outcome on

Friday, although both sides seemed to intimate that a deal was closer to hand.

U.S. Pres. Trump added fuel to the fire over the weekend, once again threatening

to walk away from a deal that isn't beneficial to the U.S. The relevant parties

will reconvene on Wednesday. Wednesday's BOC decision headlines the CA docket

this week, with the Bank seen on hold by almost all of those surveyed. Mkts have

almost fully priced in a 25bp hike at the Bank's Oct decision, so focus will

fall on the rhetoric employed & the degree of uncertainty caused by the latest

round of NAFTA talks. The Canadian labour market report will hit on Friday, with

BoC's Wilkins due to speak on the same day.