Compared with Canada, U.S. Economy Looks OK

May 30, 2008

The US dollar was initially stronger versus the Euro, Swiss franc, British pound and Japanese yen Friday, but its gains gradually faded into the US session. The Euro gave way a little during the European session upon the release of German retail sales data which turned out to be quite horrid at -1.7% m/m and -1% compared to a year ago.

Focus was then shifted to the recessionary-like conditions in the US as weak US economic data came in one after another. US consumer spending slowed in April as income gains weakened: Personal income rose by 0.2% in April, in line with expectations, following a revised 0.4% rise in March (was 0.3%). Personal spending rose by 0.2%, also as expected, following a 0.4% gain in March.

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