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

DOLLAR-CANADA: USD/CAD edged higher in early dealing this week, touching

~C$1.3117, on the back of risk-off flows, before a positive session for Chinese

equities lent support to risk appetite, with the rate last dealing at ~C$1.3090

as a result.

- On Friday afternoon USD/CAD consolidated above C$1.3100 on the back of the

softer than exp. headline Canadian CPI & retail sales data. The double release

pressed CAD to the lowest levels against the dollar since early September.

- Bulls will be encouraged by the close above the 50% fibo from Sep highs

(C$1.3084), which now allows them to target the channel top & 61.8% fibo

resistance (C$1.3135). Bears keep an eye on the 50-DMA (C$1.3015).

- Focus this week falls on the BoC rate decision on Wednesday, with markets

pricing a >90% chance of a 25bp hike at writing. Canadian wholesale trade data

will hit later today.