USD/CAD moved lower Friday after it...>

DOLLAR-CANADA: USD/CAD moved lower Friday after it breached channel base support

at C$1.3433 (see MNI e-mail MNI ANALYSIS: USDCAD Breaks Channel Base Support at

09:01 GMT 01/04), subsequently closing below C$1.3400, with bearish momentum

evident.

- Rate last deals 15 pips or so softer on the day at C$1.3357, with broader USD

weakness adding some pressure overnight. The aforementioned close below C$1.3400

has bears targeting the 50-DMA & Dec 12 low at C$1.3334/23. On the topside,

initial focus falls on Friday's peak/21-DMA at C$1.3496/97.

- Canadian spotlight this week falls on the BoC policy rate decision due

Wednesday, with >80% chance of no change priced in by BBG's WIRP (marginal

pricing is for a cut in light of the recent global economic slowdown worry &

speculation surrounding the Fed's monetary policy path), and only one of those

surveyed looking for a hike from the BoC, while the remainder look for no

change. The meeting will include the Bank's quarterly economic forecasts and a

press conference. Elsewhere, Canadian housing starts data is also due Wednesday,

while building permits figures come out Thursday.