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USD/CAD edged higher in early.........>

DOLLAR-CANADA
DOLLAR-CANADA: USD/CAD edged higher in early dealing after Saudi Arabia
suspended all new trade & investment with Canada, but the loonie recovered, with
USD/CAD hovering just above C$1.300 last. The recovery was probably aided by the
realisation that there is a limited amount of investment into Canada from Saudi
Arabia.
- As a reminder today is a Canadian market holiday, which will affect CAD
liquidity.
- Last week saw the pair keep the pressure on the lower end of the six-week
descending channel where support currently intervenes at C$1.2955, just ahead of
the long term up trendline support from January at C$1.2931. A break below here
will trigger a more significant bearish signal, bringing the C$1.2819 area in to
play. A break above C$1.3039/50 is now needed for near-term stability, opening
the way for a recovery towards C$1.3191 ahead of the C$1.3290 July high.
- Canadian labour market data, due Friday, headlines the CA docket this week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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