USD/CAD falls back from 1.3600 after US ISM PMI misses forecasts

USD/CAD flubs 1.3600 once again.
Canada Manufacturing PMI recovers but still in contraction.
US ISM Manufacturing PMI declined, flaunting forecasts.

USD/CAD fumbled the 1.3600 handle on Friday after a worse-than-expected US ISM Manufacturing Purchasing Managers Index (PMI) for February unexpectedly declined. The US Dollar (USD) was dragged broadly lower, sending the USD/CAD pair back into familiar technical territory near 1.3550.

Canada saw a decline in its S&P Global Manufacturing PMI on Friday, but market attention was focused on the day’s key US data print. Next week brings the latest rate call from the Bank of Canada (BoC) slated for next Wednesday, and next week will wrap up with another US Nonfarm Payrolls (NFP) on Friday alongside Canadian labor figures.

Daily digest market movers: USD/CAD falls back into range after ISM PMI miss

Canada’s S&P Global Manufacturing PMI for February printed at 49.7 compared to the previous 48.3, an improvement but still in contraction territory below 50.0.
The US ISM Manufacturing PMI for February fell to 47.8 versus the forecasted uptick to 49.5 from 49.1.
ISM Manufacturing PMI: declines to 47.8 in February vs. 49.5 expected.
The University of Michigan Consumer Sentiment survey index also eased to 76.9 in February, down from the forecast of a hold at the previous 79.6.
ISM Manufacturing Prices Paid also ticked lower to 52.5, down from the 53.0 forecast and the previous month’s 52.9.
Easing data is sparking investor risk appetite as inflation figures up odds of a Federal Reserve (Fed) rate cut.
Fed’s Monetary Policy Report: Inflation expectations are broadly consistent with 2% goal