Trade Desk Thoughts - CAD Ivey PMI

CAD Ivey PMI (September) Actual 61.0, Expected 51.0, Previous 51.5

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.

Increases or decreases in purchases, employment, inventories, supplier deliveries and prices will impact the economy throughout the spectrum of data. As the PMI figures move higher or lower, it indicates an increase or decrease in economic growth. Employment, CPI, Capacity Utilization and Industrial production are impacted by the increase or decrease of PMI activity. PMI is a closely watched figure for signs of future economic growth. Stronger numbers may lead to revaluations of strength and vice versa. Currency markets can swing confidently on this release.

Trade Desk Thoughts: The Ivey Purchasing Managers Index increased for the first time in two months to 61, a 950 basis point increase from August and a 510 basis point increase for the year. It was the ninth straight month of expansion. The Employment index for September stood at 49.2, Inventories 50.8, Supplier Deliveries were 44.6 and Prices were 74.6. 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: On net, the cad (USD/CAD) was still increasing in the 15 minutes after the release.

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