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.
We jumped in on a Spike trade to sell USDCAD at 0.9878 due to the much better than expected number (57.7 v 46.7E); 7 hours later, the trade hit our TP at 0.9838 for 40 pips of profit.