USDCAD was the big mover in the major space...>

FOREX: USDCAD was the big mover in the major space overnight after a report

stated that the US is dropping the "contentious" auto-content proposal in the

NAFTA talks triggered CAD (and MXN) strength, with USDCAD hitting lows of

1.3011, last 1.3025.

- JPY crosses have stuck to a tight range with Japan out on holiday. USDJPY

trades at ~106.50, with some $3.09bln worth of 106.00 expiries & $1.15bln worth

of 107.00 expiries set to roll off at Wednesday's 10AM NY cut.

- EUR & GBP have lodged modest gains vs. USD with cable > 1.4000. There are some

notable option expiries in EURUSD today, with EUR 2.09bln worth of 1.2250 exp. &

EUR 1.27bln worth of 1.2270-80 exp. set to roll off at the NY cut.

- AUDUSD had a brief foray above 0.7700 but last trades at 0.7695. NZDUSD is

virtually flat on the session with a better than exp. WMP auction result & an

upgrade to Fonterra's milk price forecast doing little to support the kiwi after

the NZDUSD's 200-DMA gave way on Tuesday.

- Risk events on Wednesday include the FOMC MonPol decision & press conference

from Fed Chair Powell, as well as UK labour market & public finance data.