USD/CAD has moved 22 pips lower and...>

DOLLAR-CANADA: USD/CAD has moved 22 pips lower and trades at C$1.2982. The

loonie received a boost as oil prices jumped in reaction to Iran's attack on

Iraqi bases hosting U.S. troops. USD/CAD holds onto those losses although oil

has unwound the bulk of its early bid, as headline flow has suggested that

Iran's attack failed to produce any U.S. casualties.

- The rate continues to hover just above its multi-month lows. A break under the

Dec 31 low of C$1.2952 would open up C$1.2917, the Oct 16 2018 trough. Meantime,

bulls need a break above C$1.3008, which limited gains on Jan 2 & 3, to gain

some momentum & target yesterday's high of C$1.3030.

- On Tuesday, the rate finished 39 pips higher as beats in U.S. trade balance,

ISM non-m'fing and factory orders supported USD. Canadian trade data was also

out yesterday, with the deficit shrinking more than expected.

- Elsewhere, U.S. Senate Finance Committee approved the USMCA trade deal,

meaning the agreement will now go to the Senate floor for a full vote.

- On the data front, the local focus turns to housing starts & building permits,

due Thursday, as well as labour mkt report, due Friday.