USD/CAD last trades at C$1.3130, a....>

DOLLAR-CANADA: USD/CAD last trades at C$1.3130, a touch lower on the day, after

falling 97 pips Friday, as the greenback underperformed on the back of softer

U.S. Tsy yields, while U.S.-China trade optimism boosted risk appetite.

- Friday also saw the latest Canadian retail sales releases. Headline retail

sales fell by 0.1% M/M in December vs. exp. -0.3%, while the core metric fell by

0.5% vs. exp of -0.3%.

- Worth mentioning that over the weekend U.S. top-level econ adviser Kudlow

announced that he is working to remove U.S. tariffs on Canadian steel and

aluminium imports after Canada's transport min Garneau said that the tariffs may

prevent Canada from signing the USMCA.

- On the technical front, initial support is located at C$1.3083, which

represents the lower 1.0% 10-DMA envelope. A break below would open up the Feb 1

YTD low of C$1.3069. Meanwhile, bulls look to the 200-DMA at C$1.3157, followed

by the 100-HMA, situated at C$1.3199.

- Key Canadian econ releases this week include domestic CPI due Wednesday, c/a

balance due Thursday, as well as Dec/Q4 GDP & m'fing PMI due Friday.