In February 2025, Canada’s S&P Global Manufacturing PMI recorded a value of 47.8, falling short of the expected 51.9. This indicates a contraction in the manufacturing sector, as any value below 50 suggests reducing activity.
The Euro to US Dollar exchange rate rallied, approaching 1.0500, as weak US PMI data negatively impacted the dollar. Concurrently, GBP/USD also rose, nearing the 1.2700 mark due to decreased selling pressure on the dollar.
Gold And Bitcoin Price Movements
Gold prices increased beyond $2,880, while Bitcoin experienced a correction, trading around $92,000 after a weekend rally. Overall, market sentiment remains cautious amid various economic indicators and developments.
Canada’s manufacturing sector performed worse than anticipated in February, with its Purchasing Managers’ Index (PMI) dropping below the neutral 50 mark. A reading of 47.8 means activity shrank rather than expanded. Given the forecast was 51.9, the shortfall suggests that industrial production is weaker than expected.
Currency markets responded promptly. The euro moved closer to 1.0500 against the dollar, as poor US PMI data weakened demand for the greenback. Similarly, sterling gained strength, edging up towards 1.2700, with fewer traders looking to sell the pound against an under-pressure dollar.
Gold buyers pushed the metal’s price above $2,880. Meanwhile, Bitcoin cooled down after spiking over the weekend, hovering in the $92,000 range. Some traders took profits, leading to this pullback.
Market Outlook And Future Trends
With a mix of caution and reactionary moves across markets, traders handling derivatives must be aware of how these indicators can shape upcoming price action. The weaker Canadian PMI suggests slowing industrial momentum, which could weigh on broader sentiment if further signs of slowdown appear. If this downturn continues, there may be speculation about future monetary policy adjustments, although no direct signals have been given yet.
On the currency front, the dollar’s slip helped both the euro and sterling gain ground, but whether this persists will depend on future US data releases. If upcoming economic figures reinforce concerns about US growth, further declines in the dollar are possible. In contrast, any stronger readings out of the US could reverse recent moves, applying pressure to both EUR/USD and GBP/USD.
Commodities remain an area of interest. Gold’s rise suggests that investors are still seeking safe-haven assets, possibly as a hedge against economic uncertainties. If confidence deteriorates further in major economies, demand for gold may continue to build, potentially driving prices higher.
Bitcoin’s retreat from its weekend highs indicates traders locking in gains, but the broader trend remains intact for now. If the digital asset faces further corrections, it will be worth watching whether buyers step back in or whether momentum stalls.
How markets unfold over the next few weeks will hinge on fresh economic data and shifts in sentiment. Traders will need to gauge whether recent moves were temporary reactions to weak figures or if they indicate deeper trends forming in the weeks ahead.
