• Canada S&P Global Manufacturing PMI declined in July.
• USD/CAD clings to small daily gains above 1.2850.

The business activity in Canada's manufacturing sector expanded at a softer pace in July than in June with the S&P Global Manufacturing PMI dropping to 52.5 from 54.6. This print came in weaker than the market expectation of 55.7.

Commenting on the data, "latest PMI data revealed another slowdown in operating conditions in Canada's manufacturing sector with the PMI at its lowest point for just over two years," said Shreeya Patel, Economist at S&P Global Market Intelligence. "Behind the latest moderation were contractions in both output and new orders which fell for the first time since the pandemic began in the first half of 2020."

Market reaction

The USD/CAD pair edged slightly higher with the initial reaction and was last seen rising 0.12% on the day at 1.2860.