USD/CAD Open 1.0338-43 Overnight Range 1.0289-1.0366
The Canadian dollar traded sideways in Asia and then came under pressure in Europe following soft data out of Germany and the Eurozone. Weaker than expected retail sales data in Germany and a slightly higher Eurozone unemployment rate gave the US dollar a boost as the month drew to a close. The North American session may be a tad livelier with the release of a bunch of data that may show further improvement in the US economy. The data includes: Apr. Personal Income (0.1%), April PCE (0.1%, Ch Asian and European equity indices (except the Nikkei) were all down as are NY equity index futures. Gold is $1,410.70 and WTI oil is $93.21.ago PMI (50.0) and May University of Michigan Consumer Confidence (83.7). The data on tap in Canada is: GDP 1Q (2.3% qoq)
The short term USD/CAD technicals are bearish while trading below 1.0360 looking for another test of support at 1.0290. A move above 1.0360 argues for another attempt at 1.0420. For today, USD support is at 1.0330 and 1.0290 with Resistance at 1.0360 and 1.0390
And in other news, there is no truth to the rumour that Stephen Harper is contemplating removing the Maple Leaf from the Canadian flag and replacing it with a banana in an effort to better reflect to the world the political state of affairs in the Great White North. Canada is plagued with financial scandals, from Senators cheating on expense accounts to the former head of the CSIS watchdog and the Montreal Urban Hospital taking bribes.