Forex forecast: How will Ivey PMI data impact USD/CAD?

NEW YORK (Forex News Now) – The Richard Ivey School of Business is due on Wednesday to publish a key report on purchasing activity in the Canadian economy, in one of the day’s major realtime forex news events.

The Ivey Purchasing Managers’ Index is expected to rise to 55.9 in August, according to two major online FX trading news outlets, up from 54 in July.

The business school is scheduled to release the report at 2:30 P.M., GMT; as such, the data is likely to dominate European afternoon currency market trading.

According to intraday analysis, a smaller-than-expected rise in purchasing activity, or even a decline, could lift USD/CAD toward short-term resistance around the daily high, 1.0509.

Should the data show a greater-than-forecast increase in activity, however, the currency pair could be pushed toward short-term support around Monday’s low, 1.0339.

However, the report will follow a key interest rate decision by the Bank of Canada, as well as the release of important data on the Canadian housing market – which may shift FX traders’ attention away from the PMI.