USDCAD Rally Holds as CAD Confidence Collapses

Friday's session wrapped up a week defined by two competing narratives: a surprisingly resilient U.S. equity market and a softer undercurrent in consumer confidence and growth data. Stocks managed modest gains — the S&P 500 up roughly 0.6% and the Dow close to 0.85% — helped along by a strong NVIDIA earnings print and renewed enthusiasm around AI infrastructure spending [1][2]. But the rally has a hollow feel to it in places. Michigan Consumer Sentiment dropped to 44.8 in the final May reading, well below the 48.2 forecast, while consumer expectations hit 44.1 against a 48.5 estimate. Five-year inflation expectations ticked up to…