• Canada Ivey PMI retreats less than expected in April.
• USD/CAD moves toward daily lows after data.

The Ivey Purchasing Managers Index (PMI), which measures the month-to-month variation in economic activity in Canada, dropped to 56.8 (seasonally adjusted) in April from 58.2 in March. However, this was a smaller drop than the market had expected, with the consensus forecast at 54.8.

The Employment Index also edged lower to 55.8 from 60.3, and the Prices Index fell to 59.0 from 62.0.

Market reaction

Following the release of the data, USD/CAD initially moved towards daily lows but later largely ignored the figures. The pair was last seen trading modestly higher on the day at 1.3615. Bank of Canada Governor Macklem is set to deliver a speech later on Thursday.