Canadian Ivey PMI misses expectations sending USD/CAD higher
|- Canadian Ivey PMI 48.2 vs expected 49.3 previous 48.7.
- USD/CAD has been pretty strong all session and in an initial reaction pushed slightly higher.
After the US beat on the ISM non-manufacturing PMI on Tuesday Canadian dollar traders were looking to see what kind of strength there is in the Canadian economy. Although the reading missed expectations it was also worse than last months reading of 48.7.
The Bank of Canada recently turned more dovish and this data confirms the reasoning behind that move.
The according to their website the data point is an economic index which measures the month to month variation in economic activity as indicated by a panel of purchasing managers from across country. The data is prepared by the Ivey Business School using end of the month data it covers all sections of Canada's economy.
Last month the index slumped into contraction for the first time since the middle of 2016. It was also projected to do the same this time out and the reading managed to come in worse than expected. USD/CAD is now pushing higher in an immediate reaction but the resistance level to watch is 1.3208. That is the consolidation high after the push higher on 30th October.
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