USD/CAD surges despite poor US data

The USD/CAD pair trims some of last Friday’s losses, so it is up by 0.46% on Monday. Worse-than-expected US economic data and a risk-off mood in are among factors that significantly boosted the US Dollar.

The USD/CAD marches firmly amid a risk aversion due to S&P Global PMIs hinting that global economies might hit a recession, while the US dollar recovered some losses, trading positive as delineated by the US Dollar Index (DXY), up 0.08%, at 111.961. At the time of writing, the USD/CAD is trading at 1.3705, gaining 0.44%.

S&P Global reported that on their final readings, US October’s Flash PMIs confirmed that the economy is contracted for the fourth consecutive month. The Manufacturing and Services components of the Composite index missed estimations and trailed September’s figures.

As a result, the S&P Flash Composite Index fell to 47.3, from 49.5 in September, and less than estimates of 49.3, as the economic downturn gathered momentum, “while confidence deteriorated sharply,” as S&P Global Chief Business Economist Chris Williamson said.