http://en.wikipedia.org/wiki/Canuck
The term appears to have been coined in the 19th century, although its etymology is unclear. Possibilities include:
* kanata[1] "village" (See Name of Canada)
* Canada + -uc (Algonquian noun suffix)
* Connaught, an obscure term for Irish-French-Canadians.
* Some linguists hold that it is derived from the Hawaiian Kanaka.[2]
According to Bart Bandy's Lexicon of Canadian Etymology (Don Mills, Ont., C. Farquharson, 1994), the term evolved from the French word canule around the time of the American Revolution, but its path of evolution is still not clear. The most likely possibility is that it rose from a mispronunciation among Benedict Arnolds forces as they laid siege to Quebec in the winter of 1776. According to Bandy, the comte de Theleme-Menteuse was one of the locals captured by the Americans. In his Contes bizarre dIsle dOrleans, the latter says that the Americans picked up the common phrase "Quelle canule," but they were usually shivering so hard when they said it that it came out with the "l" hardened into a glottal stop thence a "k."
On the other hand, Montgomery, Arnolds co-commander on the Canadian expedition, says that Arnold, who loved word-play, made a joke on the word canule that was picked up by his troops. In discussing the strategic value of placing troops at the mouth of the St. Lawrence to resist the British fleet expected in the spring, Arnold noted the peculiar shape of the Gaspé Peninsula and exclaimed, "Theres a canule to make his majesty gasp." One assumes that the same shivering effect noted previously led to the mispronunciation.