Above consensus headline Canadian.....>

DOLLAR-CANADA: Above consensus headline Canadian CPI was the initial catalyst

for CAD strength on Friday, with the late risk on flows allowing USD/CAD to

register a session low of C$1.3052 at the back end of last week. The pair has

stuck to a tight range in early dealing this week, last trading virtually

unchanged at C$1.3065.

- From a technical perspective channel resistance once again held firm on Friday

(top noted at C$1.3189 today) with the aforementioned selloff seeing the pair

test the August 15 low (C$1.3051). A break below here is needed for bears to

regain control and target the August lows (C$1.2962). A topside break of channel

resistance is needed to suggest a bull flag breakout is in play. Initial gains

are likely to target C$1.3290 and then the C$1.3389 high, under this scenario.

- Canadian retail sales, due Wednesday, headlines the CA economic docket this

week, with more attention set to fall on the BoC; Dep. Gov. Wilkins speaks later

today, while Gov. Poloz speaks on Saturday.