Forex: Canada’s Ivey PMI Increases in December; USD/CAD Weakens
THE TAKEAWAY: [Canada’s Ivey PMI jumps more than expected in December] > [Business activities continue picking up] > [USD/CAD bearish]
Canada’s Ivey Purchasing Manager’s Index grew higher than expected in December from the contraction seen in the previous month. According to a report released jointly by the Purchasing Management Association of Canada and the Richard Ivey School of Business, the purchase gauge rose to 52.8 in December after dropping to 49.8 in November. Economists surveyed by Bloomberg had a median estimation of 47.5. A reading above 50 in the purchasing managers’ measure indicates improving business conditions.
In addition, the Ivey Employment Index fell to 49.2 from 55.1, indicating a slowdown in labor market growth. Also, two other measures signaled slower purchasing with the inventory index declining to 42.4 from 55.6 and the price index dropping to 61.3 from 62.5.
Chart created using Market Scope – Prepared by Renee Mu
In the minute after the PMI data was released, the Canadian dollar climbed against the U.S. dollar, with the USD/CAD pair dropping to rose to C$0.9865 from C$0.9870. At the time this report was written, USD/CAD traded lower at C$0.9855.
--- Written by Renee Mu DailyFX Research
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