Daily Afternoon Report 04.05.2015

The U.S. dollar declined against its U.S. counterpart on Monday, but losses were expected to remain limited as Friday’s upbeat U.S. data continued to support the greenback and as investors eyed an upcoming report on U.S. factory orders.
USD/CAD hit 1.2091 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2108, dropping 0.44%.
The dollar regained some ground after a report by the Institute for Supply Management on Friday showed that activity in the manufacturing sector was stable in April, after slowing in the five previous months.
Another report showed that U.S. consumer sentiment rose in April to its highest level since January.
The reports fuelled optimism that the U.S. economy has turned a corner after a recent soft patch.
The loonie was higher against the euro, with EUR/CAD retreating 0.64% to 1.3538.
In the euro zone, data earlier showed that growth in the manufacturing sector eased slightly in April, but indicated that the economic recovery remains on track.
Research group Markit said the final reading of its manufacturing purchasing managers’ index came in at 52.0, revised up from the preliminary reading of 51.9 but below March’s 10-month high of 52.2.
Germany’s manufacturing index ticked down to 52.1 from an 11-month high of 52.8 in March, while the French factory sector remained in contraction territory for the 12th straight month.

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