USD/CAD Breaks Above the 200 Daily SMA Despite Positive Manufacturing in November
The calendar was light today, with no major economic events or headlines, so the manufacturing sales report from Canada was the highlight of the day. The risk-off mood has led markets to adopt a more cautious stance, which is hurting risk assets such as the CAD, sending USD/CAD on a break above the 200 daily SMA.
The USD is taking advantage of the negative sentiment in financial markets, making some significant gains, despite the US markets being closed for the bank holiday weekend. The market has absorbed the CPI consumer inflation numbers from Thursday and the softer US PPI numbers released on Friday, so the USD is making some decent gains today, while the CAD feeling weaker together with other commodity dollars.
Canada October Manufacturing Sales Report![Canada manufacturing sales]()
Sales made a sharp reversal higher in November
Manufacturing Sales:
- November manufacturing sales increased by 1.2%, surpassing the expected growth of 1.1%.
- October manufacturing sales were revised from -2.8% to -2.9%.
Year-over-Year (YoY) Comparison:
- Manufacturing sales were down by 0.8% compared to the same month last year.
Wholesale Trade:
- Wholesale trade for November increased by 0.9%, exceeding the expected growth of 0.8%.
- The prior month’s wholesale trade figure was revised from -0.5% to -0.3%.
Inventories:
- Inventories rose by 0.5% to a record high of $124.2 billion.
Inventory to Sales Ratio:
- The inventory-to-sales ratio increased to 1.74, compared to the prior ratio of 1.73.
In November, manufacturing sales grew 1.2% to reach $71.7 billion, however, this came from a negative month in October. The increase in sales was driven mostly by stronger sales in the chemical (+6.6%), primary metal (+4.0%), and equipment (+4.3%) subsectors. Sales in the motor vehicle industry group fell the highest (-4.0%).
Canada Manufacturing Sales in $ Billions
USD/CAD Live Chart
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