Canada’s Ivey PMI survey came in lower than expected at 43.2 in March from 45.2 in February.
USD/CAD is firmer on the day but the Ivey is a sideshow with the market much more focused on the Big dollar as well as the state of the reflation trade. Optimism blossomed late last week but with bank stocks back in focus, the reflation trade is suffering a significant set back this morning.
The commodities and commodity currencies have been a key component of that trade, so a fall in the CAD is not much of a surprise. Offers are light until 1.2500, sources say. 1.2455 is tech resistance with buy-stops pereched just above. USD/CAD trades now at 1.2375.
