The Canadian dollar is unchanged and hovering in the middle of the range in which it has been trading for the last month and about a penny away from the 6 year highs. USD to CAD volatility remains subdued as investors await the Bank of Canada’s interest rate statement tomorrow followed by US May inflation figures in on Thursday. Either of those events has the potential to move exchange rates materially as they will each go to calibrating investor expectations about the likely future path of central bank activity in each country. Helping to keep the US dollar subdued this morning is the fact that US treasury yields, which were peaking about a month ago, are down and now well below those recent highs. On the other hand, oil is down slightly from recent highs and equities are mixed, though near record levels. Canada’s merchandise trade balance for April was a slight surplus beating expectations of a slight deficit and possibly suggesting that a strengthening CAD has yet to be an obvious problem for the exporters.