Published on: 2026-06-01
The Canadian dollar eased on Monday despite soaring oil prices. Israel ordered troops to push deeper into Lebanon, which EBC Financial Group said could threaten a fragile ceasefire between Washington and Tehran.
Canada's GDP posted a surprise contraction in Q1 from a year earlier, making it two straight quarters of annualized decline as the country struggles with US tariff uncertainty.
Analysts had predicted growth of a robust 1.5%. Money markets are pricing in a rate hike of 25 bps in December, even as most economists have urged no change in interest rates all through the year.
The surge in imports was a major drag on growth, with residential investment, government spending and non-residential structures investment all shrinking.
Unemployment in the country is being driven by retirements and immigration policy, rather than a temporary economic slowdown, so rate cuts alone may not solve the problem.
PM Carney called for a "new partnership" with the US to "help make America great again," in a speech delivered in New York on Thursday. The USMCA will undergo a joint review later this year.
Loonie was testing structural support near the 50 SMA. If it continued to hold steady, we see a push above the recent swing high around 1.3780 per dollar.
As of market close on 29 May, among EBC major products, ServiceNow shares led gains. It is expanding its role in enterprise AI through multi-year partnerships with companies including Experian and Wipro.
ResMed's stock recently reached a 52-week low. But RBC Capital raised its price target for the firm to $321, citing the company's double-digit revenue and earnings growth that exceeded estimates.
Software stocks soared last week, signalling that the sector is navigating their way through AI disruption better than Wall Street expected. Traders are betting there is more to come.
