• S&P Global Manufacturing PMI for Canada recovered above 50 in April.
• USD/CAD stays in daily range at around 1.3550.

Business activity in the Canadian manufacturing sector expanded at a soft pace in April with S&P Global Manufacturing PMI improving to 50.2 from 48.6 in March. This reading came in below the market expectation of 50.5.

Commenting on the survey's findings, “although Canada’s manufacturing sector returned to growth in April, it did so only marginally with underlying data suggesting the recovery remained on shaky ground," noted Paul Smith, Economics Director at S&P Global Market Intelligence.

"Output and employment growth were sustained, but another drop in new orders is probably the most notable development," Smith added. "Clients are hesitant in their spending decisions, unsure of the direction of the economy at a time when prices remain high."

Market reaction

USD/CAD showed no immediate reaction to this report and was last seen trading modestly higher on the day at 1.3558.