CAD inches higher in quiet session -The.......>

FOREX: CAD inches higher in quiet session

-The Canadian currency was a modest outperformer Monday, clawing back some (but

far from all) the losses suffered on Friday, as markets saw renewed optimism

that a USMCA trade deal could be struck as soon as Monday. Perhaps most

importantly, a handshake deal between the Democrat-controlled House and the

White House is said to be imminent, greatly increasing the odds of a deal.

USD/CAD inched back below the C$1.3250 mark and MXN generally outperformed its

LatAm peers. USD/MXN broke below the 200-dma to hit the lowest levels in a

month.

-Elsewhere, GBP/USD edged to a fresh cycle high of $1.3181 as polling continues

to suggest a Conservative majority is the most likely outcome at the end of this

week. Short-end GBP/USD implied vols remain well bid, with the one-week contract

hitting the highest levels since the October 31st Brexit deadline.

-Chinese inflation data, French, Italian & UK industrial production and

Germany's December ZEW survey are the data highlights Tuesday. ECB's Visco is

also due to speak.