Canada: Manufacturing Sales surge by a record 20.7% in June

• Manufacturing Sales in Canada increased more than expected in June.
• USD/CAD edged lower after the data but still trades in the positive territory.

Manufacturing Sales in Canada rose by a record pace of 20.7% on a monthly basis in June to $48.7 billion. This reading followed May's 11.6% increase and came in better than the market expectation of 16.4%.

"Many factories operated at a much higher capacity in June, with the capacity utilization rate (not seasonally adjusted) for the total manufacturing sector increasing 10.9 percentage points to 73.3%," Statistics Canada said. "Still, the capacity utilization rate remained 8.0 percentage points below the June 2019 level (81.3%)."

Market reaction

The USD/CAD pair lost around 20 pips in a matter of minutes with the initial reaction to this data and was last seen trading at 1.3230, where it was still up 0.1% on the day.