Data forecast to show slight drop in Canada PMI

NEW YORK (Forex News Now) – The Richard Ivey School of Business is due on Monday to publish its monthly Canadian Purchasing Managers’ Index, in one of the day’s major realtime forex news events affecting the loonie.

The report is expected to show that the index slowed to a reading of 56.4, according to at least two major online FX trading news outlets, down from a mark of 56.7 the previous month.

The Ontario-based school is scheduled to release the report at 3:00 P.M., GMT, in time to affect morning North American currency market trading.

However, the release of the report may be overshadowed by data set to be published earlier in the day on the change in the total value of new building permits issued in Canada in October.

According to USD/CAD analysis, a better-than-forecast PMI reading could push the currency pair toward short-term support around the low of Nov. 5, 0.9991.

But should the data show a greater-than-forecast drop, the currency pair could head toward short-term resistance around Friday’s high of 1.0080.

A reading of above 50.0 indicates industry expansion, while a reading of below 50.0 indicates contraction.