Ivey PMI boosts loonie
- Last Updated on 09 February 2012
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The Canadian dollar saw some positive gains against its safe-haven counterparts yesterday, following the release of a better than expected Ivey PMI. The PMI is considered one of the leading indicators of Canadian economic health. The figure, which analysts were originally predicting to come in at 58.6, came in at a surprisingly strong 64.1. While gains were recorded against both the USD and JPY, investor risk taking following the release of the indicator caused the euro to gain on the loonie.
Turning to today, traders will want to keep track of any developments in the euro-zone. In particular, the Greek debt situation is likely to influence the direction the CAD takes. Any positive developments are likely to lead to an increase in risk taking, which could help the CAD extend its gains against both the USD and JPY. At the same time, such a development would likely lead to further losses against the euro.