• S&P Global Manufacturing PMI for Canada rose above 50 in January.
• USD/CAD continues to fluctuate in a tight range at around 1.3300.

Business activity in Canada's manufacturing sector expanded at a modest pace in January with S&P Global Manufacturing PMI rising to 51 from 49.2 in December. This reading came in better than the market expectation of 49.4.

Commenting on the survey results, "the Canadian manufacturing economy began 2023 on a firmer footing than at the end of last year, registering some welcome, albeit modest, growth in both output and new orders," Paul Smith, Economics Director at S&P Global Market Intelligence said.

"Also welcome is the reduction in inflationary pressures and gives additional hope of firmer sector recovery in the months ahead," Smith added. "However, we must remember that growth is modest, and fears of the negative impacts on output of recession persist."

Market reaction

the USD/CAD pair showed no immediate reaction to this report and was last seen posting small daily gains at 1.3315.