Canada: Markit Manufacturing PMI falls to 54.4 in January vs. 57 expected

• Markit Manufacturing PMI in Canada fell modestly in January.
• USD/CAD pair clings gaily gains near 1.2800 after the data.

The business activity in Canada's manufacturing sector expanded in January, albeit at a softer pace than it did in December with the IHS Markit Manufacturing PMI falling to 54.4 from 57.9. This reading came in worse than the market expectation of 57.

Commenting on the data, "signs of fragility emerged as all five of the PMI components moderated at the start of the year," said Shreeya Patel, Economist at IHS Markit. "Ongoing restrictions and border closures continue to pose a threat to exports and factory operations."

Market reaction

The USD/CAD pair showed no immediate reaction to this report and was last seen gaining 0.12% on the day at 1.2793.