Canadian Ivey PMI Drops Below 50

Canadian Ivey PMI Actual 48.4, Expected 54.3, Previous 53.7

Release Explanation: The Ivey PMI measures month to month changes in the business activity of economic components, by a panel of purchasing managers from across Canada. The 175 participants of this survey have been carefully selected geographically and by sector of activity to match the Canadian economy as a whole. Panel members indicate an increase or decrease in purchases, employment, inventories, supplier deliveries and prices paid and charged.

TheLFB-Forex.com Trade Desk Thoughts: Canada's Ivey Purchasing Managers Index (PMI) came in at 48.4, lower than the expected 54.3 and below the prior month's read of 53.7. The corresponding figure for May, 2008 was 62.5 and for May, 2007 was 62.7

The Employment index for May stood at 50, Inventories 44.7, Supplier Deliveries were 42.5 and Prices were 54.2.

The Ivey PMI is not adjusted for seasonality or inflation and shows responses to one question: "Were your purchases last month in dollars higher, the same, or lower than the previous month?" A figure above 50 shows an increase while below 50 shows a decrease.

Forex Technical Reaction: The cad has moved in a wide range since the start of last night's Asian session, but had little reaction to the release of this report.

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