Canadian dollar recovers ahead of US PMI figures

As data-driven markets wait for the US PMI reading, the Canadian dollar finds space on the upper side. Up to Wednesday’s CAD Retail Sales, there is still insufficient data for Canada. US PMIs on Tuesday are predicted to indicate a modest increase in activity.

On Monday, the Canadian dollar saw a slight increase and entered the green zone relative to the majority of its major currency counterparts. The US dollar and its Canadian counterpart are both in limbo on Monday due to a light economic calendar while investors wait for important news.

With an increase in the Raw Materials Price Index on Monday, Canada presented data that was purely of the lowest calibre. Simultaneously, Industrial Product Prices printed higher but less than the prior number, in line with forecasts. In March, the Canadian New Home Price Index decreased marginally from the same time previous year and flattened, missing projections.

Although Monday’s Canada data showed mixed results, the market is still focused on other things, therefore the CAD has potential to grow. In March, Canadian Industrial Produce Prices eased to the anticipated 0.8%.

In March, the Canadian New Housing Price Index reached a zero value, as opposed to the constant hold of 0.1% that was predicted. YoY NHPI decreased by 0.4% as home values sagged after experiencing years of rapid expansion.


In March, Canada’s Raw Material Price Index surged 3.7%, surpassing the estimated 2.9% increase from February’s 2.1%. Midweek data on Canadian retail sales for February is anticipated to show a 0.1% increase on Wednesday, following a -0.3% decrease in January.

The US S&P Global Purchasing Managers Index (PMI) is expected to print at 52.0 (previously 51.9) for the Manufacturing component and 52.0 (previously 51.7%) for the Services component on Tuesday. This will be the major data print for the early part of the week.

In the latter part of the trading week, the US Gross Domestic Product (GDP) and US Core Personal Consumption Expenditures (PCE) will be the main topics of attention for the market.