Ivey PMI seasonally adjusted index drops down to 57.8 in April. Although analysts had predicted a decline, this was worse than the expected 65.5 drop. In March, the index was at 73.2.
Purchasing activity in the Canadian economy rose in April, but by less than the previous month and below what forecasters expected, according to the Ivey Purchasing Managers Index.
The Ivey Purchasing Managers Index is released on a monthly basis as a joint project of the Purchasing Management Association of Canada and the Richard Ivey School of Business in Ontario.
Generally, a reading of 50 indicates that activity remained flat from the preceding month, while a reading higher than 50 indicates industry expansion and a reading below reflects a contracting economy. PMI is considered to be a leading indicator of economic health.
After the release of the report, the Canadian dollar made losses against the US Dollar. USDCAD rose from a US session low of 0.9633 to a high of 0.9703.
The Loonie has been sliding against the greenback in the past week driven by the slide in commodities.
In the earlier European session, the pair rose from the opening level of a low 0.9575 to close higher at 0.9656. There was a slight correction after the release of the US jobless claims, which jumped to an eight-month high. The US Dollar soon regained momentum and climbed again.