USDCAD Breaks Higher as Canadian Confidence Collapses

Friday's session had a distinctly split personality. U.S. equities held gains — the S&P 500 up roughly 0.6% and the Dow adding close to 0.85% — while under the surface, the data told a more cautious story. Michigan Consumer Sentiment came in at 44.8 for May, well below the 48.2 forecast and down sharply from April's 49.8. Inflation expectations ticked higher too, with the 5-year reading hitting 3.9% against a 3.4% forecast. That combination — soft sentiment, sticky inflation expectations, and a Fed Governor Waller speech that markets interpreted as leaving rate hikes on the table — kept a lid on the rally and weighed…