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

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.