FX Update: USD-CAD has ebbed to 10-day lows
FX Update: USD-CAD has ebbed to 10-day lows in the mid 1.24s. The revival of risk appetite on global markets, which has lifted oil prices, has been a positive for the Canadian dollar just as it has been a negative lead of the U.S. dollar. This backdrop should keep USD-CAD biased lower for now, though analysts think that the near decade era of low volatility, near constant equity market gains, is over. Upcoming data out of Canada include the December manufacturing report (Friday), expected to reveal a 0.5% gain in shipment values after the 3.4% surge in November. Before this, the January existing home sales report is on tap later today. USD-CAD has support at 1.2435-26.