• S&P Global Manufacturing PMI continued to decline in October.
• USD/CAD trades deep in negative territory at around mid-1.3500s.

The business activity in the Canadian manufacturing sector continued to contract at an accelerating pace in October with the S&P Global Manufacturing PMI declining to 48.8 from 49.8 in September. This reading came in weaker than the market expectation of 49.2.

Commenting on the data, "October PMI data for Canada alluded to a weaker manufacturing performance as output and new orders fell concurrently and for the fourth month in a row," said Shreeya Patel, Economist at S&P Global Market Intelligence. "The rates of decline also quickened from those seen in September and were among the strongest in the survey's 12-year history."

Market reaction

The USD/CAD pair edged slightly higher from daily lows with the initial reaction and was last seen losing 0.48% on the day at 1.3560.