Economic Indicators

Forex economic indicators. Detailed explanation on various forex economic indicators and how to trade using these indicators

What is the ISM Manufacturing PMI Indicator

What is the ISM Manufacturing PMI Indicator

Economic Indicators
The Institute for Supply Management (ISM) releases a monthly economic report known as the ISM manufacturing Purchase Manager Index (PMI). The ISM manufacturing PMI for short is one of the leading economic indicators which give an early glimpse into the health of the manufacturing sector in the US. The ISM was formerly known as National Association of Purchasing Management (NAPM). The ISM has been conducting its survey since the end of World War II. In this article, you will learn what the ISM manufacturing PMI report is, what the components of the report are, how to read the ISM manufacturing PMI report and how it affects the markets. What is the ISM manufacturing PMI report? The ISM manufacturing PMI is an economic indicator that reports the economic health of the manufacturing secto...
Operation Twist – What is it all about

Operation Twist – What is it all about

Economic Indicators
Operation Twist is a federal reserve monetary policy involving buying and selling of bonds in an effort to push down the interest rates on mid term and long term interest rates. In Operation Twist, the Federal reserve sells the short term or mid term treasury bonds and uses the cash to buy the long term treasury bonds thus generating demands and reducing the interest rates. In bond markets, when there is a demand for bonds the interest rates are low and vice versa. The term Operation Twist was named after the Chubby Checker song and was first tired in the 60's. The name comes due to the graphical representation it has on the yield curve. A typical yield curve has a linear upward sloping yield. The Operation Twist's actions aims to twist the end of the yield curve which gave rise to ...

What is the US Pending Home Sales Report Index

Economic Indicators
US Pending Home Sales Report is presented by the National Association of Realtors which publishes the Pending Home Sales Index report, PHSI; an indicator to any changes in the housing contract activity and is considered to be a leading economic indicator in the housing market activity, the US Pending Home Sales Report. The Pending Home Sales Report is formed on the basis of the number of real estate contracts that are signed for existing condos, homes and co-operative socities. Due to the fact that a signed contract doesn't necessarily mean as a sale unless a transaction is made, it is therefore not considered as a sale, the PHSI index does not include constructions in its measure. The Pending Home Sales Report is released once every 4 weeks from the date of release of the previous repo...
What is the Existing Home Sales Report Index

What is the Existing Home Sales Report Index

Economic Indicators
The Existing Home Sales Report Index, published by the National Association of Realtors is released every month where the results are based on the number of closed sales in the housing market activity. Considered to be a leading economic indicator, the Existing Home Sales Report Index reacts to any changes in the mortgage rates as obvious. Not to be mistaken for sales of new homes, the Existing Home Sales Report Index measures the sales of existing homes only. While calculating the existing home sales, a time period of up to two months is considered, therefore the data published under the Existing Home Sales Report reflects on closed existing home sales prior to two months. The Existing Home sales takes into account these seasonal variations into their monthly reports. The existing home
Ivey Purchasing Managers Index – Canada

Ivey Purchasing Managers Index – Canada

Economic Indicators
The Ivey Purchasing Manager's index is an important economic indicator for Canada and influences the CAD currency against the majors. The Ivey Purchasing Manager's Index, is also refered to as the Ivey PMI which is an economic index to measure the monthly fluctuation in the economic activity made up of a panel of purchase managers across Canada. Influences: CAD. Currency Pairs: USD/CAD Released: Fourth working day of the month The Ivey Purchasing Manager's Index is is published by the Purchasing Management Association of Canada along with the Richard Ivey School of business and is made of 175 participants that includes both the public and private sectors. The Ivey PMI's members indicate whether their organization's activity is higher or lower than the previous across the follow...