The US dollar outperformed in the North American exchanges last week amid a heavily risk averse sentiment in the market, mainly driven by the European economic, political, and debt debacle complex, and a broad-based downcast mood on the fellow safe haven Japanese yen. The Greenback surged 2.11 percent to the Euro, 2.08 percent to the Swiss franc and 0.83 percent to the Yen. Meanwhile, the risk-off sentiment appeared to have been dodged by the Canadian dollar as it appreciated against all but two of its most traded peers in spite of an unflattering retail trade figure and the retreating commodities market. The Loonie rose 0.21 percent to the Australian dollar and 0.29 percent to the UK pound, but dropped 0.31 percent to the New Zealand dollar.

Today, the North American exchanges are anticipated to be roiled by the European debt crisis preempting the muted US and Canadian economic calendars. The Spanish banking system has come under fire as several banks, including the nation’s fourth largest, Bankia, were downgraded by Standard & Poor’s citing the widening of mark to market losses, particularly those on mortgages, due to the recessionary threats to the entire economy. Hence, the safe haven Greenback is apt to rise while the risk-linked Loonie is likely to weaken.

Consumer sentiment and housing prices are apt to be unveiled in Tuesday. After sliding 3.5 percent in the three months to February, the S&P/Case-Shiller House Price Index for 20 metropolises dropped slower at a rate of 2.7 percent. Meanwhile, running parallel to the multi-year highs of the University of Michigan Consumer Sentiment survey this month, the Consumer Confidence from the Conference Board is held by consensus to stand at 69.6 points in May, up from 69.2 points a month ago. As such, a highly volatile Greenback is expected.

Canadian fundamental indicators flash on the radar on Wednesday, albeit the valuation of the Loonie remains under fire. After dropping 1.6 percent in March, the Raw Materials Price Index is believed to have rebounded 2.1 percent in April while the Industrial Producers’ Price Index likely meagerly gained 0.1 percent during the same month from 0.2 percent in March. In the US, the Pending Home Sales report from the National Association of Realtors is expected to have flattened out in April, from a respectable 4.1 percent growth in the month before. Therefore, the appreciation of the Greenback is likely.

Thursday, both the Loonie and the Greenback are anticipated to be traded with high volatility. Critical reports include the ADP Non-Farm Employment Change where a net job gain of 139,000 in May is estimated from 119,000 in April; the Preliminary GDP growth at 1.9 percent from an earlier estimate by the Bureau of Economic Analysis at 2.2 percent; and a 1,000 drop in the Unemployment Claims to 369,000 for the week ended May 25. In Canada, the slimming trade surplus is believed to have deepened the Current Account deficit to CAD11.1 Billion in March, from CAD10.3 Billion in February.

Finally on Friday, the Canadian GDP is awaited to be reported. In March, the economic activity rebounded to a 0.3 percent month-on-month growth reversing the shallow 0.2 percent contraction in the prior month. This is seen as Loonie positive. The Greenback meanwhile is expected to be volatile still. A respectable Non-Farm Payroll at 152,000 versus prior figure of 115,000 is apt to strike in contrast with the risk implications of the falling ISM Manufacturing PMI at 54.1 points in May from 54.8 points in April. The jobless rate is held steady at 8.1 percent.