Top Headline: USD/CAD Flounders Once Again as US ISM Manufacturing PMI Declines Unexpectedly
On Friday, the USD/CAD struggled to maintain the 1.3600 level following a disappointing US ISM Manufacturing Purchasing Managers Index (PMI) report for February. This unexpected decline in the PMI led to a broad decrease in the US Dollar (USD) value, causing the USD/CAD pair to retreat back to around 1.3550, which is a familiar technical area.
While Canada’s S&P Global Manufacturing PMI showed some improvement in February, it remained in contraction territory below the crucial 50.0 level. The upcoming week will bring the Bank of Canada’s (BoC) rate call and both US Nonfarm Payrolls (NFP) and Canadian labor figures at the end of the week.
Market Snapshot: Impact of ISM PMI Miss on USD/CAD Movements
- Canada’s S&P Global Manufacturing PMI rose from 48.3 to 49.7 in February, still indicating contraction below 50.0.
- The US ISM Manufacturing PMI unexpectedly dropped to 47.8, contrary to the expected increase to 49.5 from 49.1.
- Other key data like the University of Michigan Consumer Sentiment survey index and ISM Manufacturing Prices Paid also showed declines, hinting at potential Fed rate cuts.
Canadian Dollar Performance: Recent Changes Against Major Currencies
The table below illustrates the percentage changes in the Canadian Dollar (CAD) against various major currencies today, showcasing its strength against currencies like the Japanese Yen.
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF
USD
-0.28%
-0.26%
-0.10%
-0.46%
0.03%
-0.33%
-0.14%
EUR
0.29%
0.04%
0.17%
-0.17%
0.33%
-0.05%
0.15%
GBP
0.25%
-0.04%
0.14%
-0.21%
0.29%
-0.09%
0.11%
CAD
0.10%
-0.17%
-0.14%
-0.34%
0.16%
-0.22%
-0.02%
AUD
0.47%
0.18%
0.21%
0.34%
0.50%
0.12%
0.33%
JPY
-0.03%
-0.31%
-0.29%
-0.15%
-0.50%
-0.37%
-0.17%
NZD
0.34%
0.05%
0.08%
0.23%
-0.13%
0.36%
0.20%
CHF
0.15%
-0.14%
-0.11%
0.03%
-0.31%
0.20%
-0.19%
The heat map provides a visual representation of the percentage changes in major currencies against each other, offering insight into the market movements.
Technical Insight: USD/CAD Faces Resistance Below 1.3600 amid Near-Term Consolidation
Following an intraday high near 1.3600, the USD/CAD pair retreated to the 1.3550 level on Friday, indicating ongoing consolidation and resistance around the 1.3600 mark.