1. US Durable Goods Orders
2. Bank of Canada Rate Decision

US Durable Goods Orders (APR) (12:30 GMT, 8:30 EST)

Headline
Consensus:  -0.5%
Previous:  6.5%

Ex-Transportation
Consensus:  0.5%
Previous:  3.1%

Outlook:  Expected to pullback slightly, orders for goods made to last longer than four years is estimated to have declined over the course of the month.  Soaring 6.5 percent in March, April demand is expected to slow down as aircraft and machinery orders dwindle.  Nonetheless, the ex-transportation figure is expected to remain above zero, rising 0.5 percent as an improved economy continues to bolster job growth and higher wage earnings.  Coincidentally, the report is reflective of upticks in personal income, higher by 0.5 percent in the month, and personal spending which advanced 0.6 percent.  The higher figure should lend to mounting speculation of at least one more rate hike by Federal Reserve officials at the June 28-29 meeting, however, continue to keep option open for policy makers as the overall headline decline is surely to peak some bearish interest.

Previous:  Durable goods orders in the worldââ,¬â"¢s largest economy soared to the highest levels since May 2005 as increased aircraft, machinery and electronics orders boosted the overall figure.  In the month of March, transportation orders rose 14 percent including a 71 percent jump in aircraft demand.  Defense capital goods subsequently increased by 12.6 percent and contributed to the overall tick higher.  Notably, survey results excluding the volatile transportation component increased 3.1 percent, boosting the prospects of higher near term interest rates by Fed officials as growth estimates are revised higher.  Coupled with recently positive economic data, the durable goods orders survey has led consensus estimates for quarterly gross domestic product to expand at a 4.8 percent clip.  Although expected to pullback slightly in the second quarter, the continued string of positive figures boosts speculation of another rate hike past the current standing.

Bank of Canada Rate Decision (13:00 GMT, 9:30 EST)
Consensus: 4.25%
Previous: 4.00%

Outlook:  Expected to raise interest rates another 25 basis points, the Bank of Canada may offer slightly more dovish statements following the widely anticipated decision tomorrow.  Fostering expectations of a seventh rate hike decision by policy makers has been uplifting economic data, reflective of growth and expansion in the worldââ,¬â"¢s ninth largest economy, even as inflation remains tepid.  Housing sector strength has advanced with consumer spending attributed to residential purchases as well as consumption of domestic and imported goods. Notably, higher commodity prices, especially gold and crude oil, have spurred on stock valuations and earnings growth as the economy stands as the only G7 nation to sport a considerable trade surplus.  This has subsequently led to improved employment prospects and rising wage growth for employees.  However, inflationary pressures have remained muted causing some policy makers to consider a halt in the current preemptive stance against price increases.  Noted in the previous decision, central bankers stated that lower import prices seem to be keeping the overall inflationary pressures light as the core rate remains below the 2 percent benchmark target.  In recent days suggestions have also been made that an appreciated domestic currency may in fact be nullifying the overall effect of shifts in monetary policy.  These statements have sparked concern with some considering an imminent halt in rates till a further assessment can be made by Governor David Dodge. 

Richard Lee is a Currency Strategist at FXCM.