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  • Markit Manufacturing PMI in Canada retreated slightly in May.
  • USD/CAD continues to trade in the negative territory below 1.2030.

The business activity in Canada’s manufacturing sector continued to expand in May albeit at a softer pace than it did in April with the Markit Manufacturing PMI edging lower to 57 from 57.2. This reading missed the market expectation of 57.9.

Commenting on the data, “May PMI data reveals another robust expansion across Canada’s manufacturing sector with solid upticks in output and new orders registered,” noted  Shreeya Patel, Economist at IHS Markit.  “Policymakers will particularly welcome the stronger uplift in workforce numbers after the country saw the unemployment rate climb post-pandemic.”

Market reaction

This report doesn’t seem to be having a noticeable impact on the CAD’s performance against its rivals. As of writing, the USD/CAD pair was down 0.3% on the day at 1.2025.