USD/CAD last deals at C$1.3537, 37....>

DOLLAR-CANADA: USD/CAD last deals at C$1.3537, 37 pips higher on the day. Above

the May 27 multi-month high of C$1.3547 would expose the uptrend resistance at

C$1.3567. Bears look to C$1.3500, which capped gains on Tuesday.

- The loonie has dived to the bottom of the G10 pile after U.S. President Trump

announced that the U.S. will impose 5% tariffs on all goods from Mexico,

effective on June 10. Subsequent statement from the White House noted that the

tariffs may increase to 25% by Oct 1 if Mexico fails to "take action to

dramatically reduce or eliminate the number of illegal aliens crossing its

territory into the U.S."

- This comes after CAD finished as the second best G10 currency yesterday,

drawing support from a recovery in risk appetite, in spite of a slump in WTI

prices. WTI is extending losses at typing, on the back of the U.S.-Mexico trade

matters.

- U.S. VP Pence assured Canadian PM Trudeau that the U.S. will pass the USMCA

this year.

- Canadian GDP comes out today.