Home Daily Commentaries CAD gains strength amid rising PMI data

CAD gains strength amid rising PMI data

Melanie Scott
Written by
Melanie Scott

Melanie Scott

OFXpert

Fascinated by the mechanisms that shape financial markets and their impact on currencies, Melanie is passionate about understanding how different factors shape market movements.

| Monday 1 April, 2024

Daily Currency Update

The Canadian dollar gained strength against many major currencies this morning after the release of Purchasing Manager’s Index (PMI) data. Manufacturing PMI for Canada rose to 49.8 in March after February’s 49.7 mark. While this rise is positive, any reading below 50 is a contraction indicator for that sector. The Canadian manufacturing PMI has been below that threshold since May, the longest stretch of contraction in the sector since 2010. The Loonie was down against the USD this morning after the US PMI data release on Friday which spurred the belief that the US Federal Reserve may cut rates in June. In oil news, West Texas Intermediate (WTI) crude oil was up 0.88% closing in on the 84 level this morning. Markets will be looking ahead to the Trade Balance data release on Thursday and unemployment numbers on Friday.

Key Movers

The US dollar was gaining strength against many major counterparts this morning as Friday’s PMI data release showed easing US prices. The ISM Manufacturing PMI was better than expected, coming in at 50.3 versus the forecasted 48.5 and the previous 47.8. ISM manufacturing prices were up to 55.8 from the previous 52.5 and the expected 53.3. This data helped support the belief that the Federal Reserve may cut rates in June. The US Dollar Index traded near 104.94 this morning.

While there is a bank holiday in both the Eurozone and the United Kingdom today, the EUR worked to remain steady ahead of March inflation data set to be released later this week. The EUR/USD pair dipped this morning trading in the 1.07424 range. The GBP/USD pair also traded low this morning around the 1.25575 level.

Expected Ranges

  • EUR/CAD: 1.45787 - 1.46268 ▼
  • GBP/CAD: 1.70474 - 1.71103 ▼
  • AUD/CAD: 0.88099 - 0.88395 ▼
  • USD/CAD: 1.35148 - 1.35850 ▲

Written by

Melanie Scott

OFXpert

Fascinated by the mechanisms that shape financial markets and their impact on currencies, Melanie is passionate about understanding how different factors shape market movements, and deciphering what these fluctuations signify for different currencies. As a Corporate Client Associate at OFX, she works closely with businesses across North America, offering them insights into foreign exchange strategies aimed at mitigating currency risks.