USD, CAD flows: USD softer, CAD firmer after data

The USD has started the US session on the back foot, falling back across the board, but is not much changed after the US personal income, consumption and goods trade data. The income data was on the strong side, and the trade deficit was much lower than expected in April, which might be a positive for GDP in Q2. Bu the CAD is the only currency that has moved significantly after the data, reacting to the slightly stronger than expected Canadian Q1 GDP data, up 2.2% annualised on the quarter. But even the CAD strength is fairly modest, and the market looks likely to be relatively steady int the end of the week.