Canada IVEY PMI m/m 01/07/10

10:00am (NY Time) CA IVEY PMI      Forecast 52.2    Previous 55.9
ACTION:  USD/CAD    SELL 55.2    BUY 49.2

We’ll be trading the IVEY PMI from Canada today, it is the equivalent of both ISM PMI’s out of US where purchasing managers of all sectors of the economy participate in this survey.  As with PMIs, they are considered as leading indicators, and a reading of  above 50 would be considered as expansion in the economy whereas a reading below 50 would be considered as contraction in the economy.

Our tradable deviation is 3.0 as it has provided a good track record; we need to get either a 55.2 or 49.2 (based on 52.2 of expectation) for us to take a trade.  For the past few months of so I have skipped this release due to conflict of schedule.  IVEY PMI is usually tradable before the Canadian Employment Changes, and not after or scheduled at the same day.  This should sway public sentiment on Friday if we get a strong reading today, thus the impact of this release may also be more profound.

DEFINITION

“The Ivey Purchasing Manager’s Index (PMI) measures the activity level of purchasing managers from all sectors of the economy, with a reading above 50 indicating expansion. A rising trend has a positive effect on the nation’s currency. To produce the index, purchasing managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries, and inventories. Traders watch these surveys closely because purchasing managers, by virtue of their jobs, have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.”

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3. Forex News Trading Canada IVEY PMI 01/06/11
4. Forex News Trading For Canada IVEY PMI 10/06/10
5. Canada IVEY PMI Trade Plan For 07/07/10
6. AU Canada IVEY PMI 04/07/10
7. Canada IVEY PMI 03/04/2010
8. Forex News Trading CA IVEY PMI 05/05/11
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Tagged as: CAD, Canadian Employment, economic performance, Employment Changes, Inventories, ISM, Ivey, IVEY PMI, Leading Indicator, Leading Indicators, PMI, Pmis, purchasing manager, purchasing managers, Sectors Of The Economy, Supplier Deliveries