Canada: Ivey PMI drops to 22.8 in April vs. 25 expected

• Ivery Purchasing Managers Index dropped more than expected in April.
• USD/CAD pair continues to trade in red near 1.4060 despite the dismal data.

The economic activity in Canada's private sector continued to contract at an accelerated pace in April the Ivey Purchasing Managers Index falling to 22.8 in April (seasonally adjusted) from 26 in March. This reading came in worse than the market expectation of 25.

Further details of the publication revealed that the Employment Index edged lower to 22.9 from 26.7 but the Inventories Index recovered modestly to 34.5 from 33.6.

Market reaction

The USD/CAD pair largely ignored this report and was last seen down 0.6% on a daily basis at 1.4058.