Sunday April 10, 2016 - 13:20:07 GMT
Share This Story
Global-View - www.global-view.com
Global Economy Stirring? Using Manufacturing PMIs For Trading
Fundamentals for Trading. EXCLUSIVE CHARTS:
Latest Manufacturing PMI. The Smoothed (3mo Averages) Manufacturing PMIs have been turning south. No wonder key central banks have been fretting. The Fed's policy "normalization" was recently put on hold due to concerns about global growth. On the other hand, the U.S. PMI recently has been turning up. This upswing has started to appear in government statistics as well. Keep in mind, PMI readings are not "hard" economic statistics. Also keep in mind that while the economy might be improving, the absolute level of growth has been quite modest.
I tend to focus much more on the manufacturing PMI series, even in Service economies, because it is more sensitive to changes in the business cycle. Forex markets tend to be very sensitive to changes in relative growth and to swings in short-term interest rates.
EXCLUSIVE CHART: Commodity Currencies (plus China).
Unlike the major economy PMIs, the smoothed moving averages have been turning higher. The recent recovery in the AUD was presaged in its PMI. China continues to run about flat. The bottoming of crude prices appears to be helping the U.S. and Canadian PMIs. This chart might be signaling the early days of a global economic recovery. Keep a close eye on oil and commodity prices.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."