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USD/CAD has shed 22 pips and now......>

DOLLAR-CANADA
DOLLAR-CANADA: USD/CAD has shed 22 pips and now trades at C$1.2980. The loonie
draws a modicum of support from firmer oil prices, as WTI extended Friday's
gains on the back of further escalation in Mideast tensions, and showed above
2019 highs. Elsewhere, early risk-off moves have faded as participants digest
the latest news flow & assess the state of U.S.-Iran tensions.
- The focus remains on the Mideast situation after the weekend saw some
aggressive rhetoric and gestures from the U.S. and Iran, with the latter
dropping its commitment to limit uranium enrichment and raising red flag on the
Jamkaran Mosque in Qom (a symbol of vengeance). Meanwhile, the Iraqi parliament
asked the gov't to expel U.S. troops from the country.
- USD/CAD continues to hover just above its recent 14-month lows. A dip under
the Dec 31 low of C$1.2952 would open up the Oct 16 2018 trough at C$1.2917.
Meanwhile, bulls look for a move through the C$1.3016-26 area, which registered
several daily lows through Jul 2019.
- Coming up this week are Canadian trade balance (Tuesday), housing starts &
building permits (Thursday), as well as the local jobs report (Friday).

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