USD/CAD has edged higher, last........>

DOLLAR-CANADA: USD/CAD has edged higher, last ~C$1.3115, on the back of the

aforementioned risk-off flows.

- On Friday afternoon USD/CAD consolidated around present levels after rising by

~90 pips 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.

- The negative impact of these sensitive data releases might have been slightly

capped by Friday's moderate increase in oil prices.

- 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 at C$1.3135. Bears keep an eye on the 50-DMA at C$1.3015 ahead of

challenging the 200-DMA at C$1.2904.

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

pricing a >90% chance of a 25bp hike at writing.