Summary:

• Canadian Ivey PMI 63.8 vs 60.2 expected
• Highest reading since January 2016
• USDCAD moves off daily highs

It’s a relatively light afternoon in North America on the data front with the the biggest release the Canadian Ivey PMI which has surprised to the upside. A reading of 63.8 for the month of October represents the highest reading since January 2016 and is comfortably above the consensus forecast (60.2) and the prior reading (59.6). 

 The strong Ivey PMI reading is a clear positive sign for the Canadian economy and is at its highest level in almost 2 years. Source: XTB Macrobond 

Friday saw a strong job report form Canada and today’s release further supports the notion that the economy is performing well. Due to the relatively large amount of crude oil produced in Canada, the recent rise in the oil price will likely provide a further boost to GDP. 

 USDCAD has retraced some of the drop seen following Friday’s jobs numbers but the pair remains below the 61.8% fib at 1.2785. Source: xStation

We earlier posted a trade idea for this pair from Credit Agricole which can be found here.