Canada's Ivey Business Survey dips in July. Dollar gains in Currency Trading. | CountingPips Forex & Currency Trading Blog

August 6, 2008 - Forex Economic News

Canada's Ivey Business Survey dips in July. US Dollar gains in Currency Trading.

The Ivey Purchasing Managers Index for the month of July was released out of Canada today. The Ivey Index, which surveys monthly changes in purchasing activity of selected business managers, fell in July to a score of 65.5. July's score was down from 69.6 in June but firmly above the July 2007 score of 54.6 and the July 2006 score of 60.1.

The July report surpassed CAD Economic News economic forecasts expecting the Ivey Index score to be 61.0. A score above 50 in the index indicates an increase in activity, a score below 50 indicates a decrease while a score of 50 is considered to mean activity had remained flat. The Ivey employment index for July registered 46.3 while the prices index fell registered 80.9. The inventories index registered a 60.8 score and the supplier deliveries index registered a 36.4 score for July.

Dollar gains in currency trading.

The U.S. dollar has continued to gain ground against its major currency rivals today in the forex markets. Crude Oil has fallen today to below $117 a barrel and all eyes are fixed on the central bank interest rate announcements tomorrow by the Bank of England and the European Central Bank. Expectations are that both central banks will hold their interest rates steady.

The dollar, meanwhile, has reached its highest exchange rate against the euro since June 16th at 1.5408 dollars per euro. The American currency fell to its lowest ever exchange rate on July 15th at 1.6038 dollars per euro and has made a comeback to close higher for three straight weeks and is on its way this week to make it four in a row.

Against the Japanese yen today, the dollar has traded at its highest exchange rate since January 9th of this year at approximately 109.50 yen per dollar and is approaching the 110.00 yen per dollar level which has not been reached since December 2007. Elsewhere, in the U.S. trading session, the dollar is higher verses the British pound sterling(1.9494), Canadian dollar(1.0469), Aussie(0.9094), Swiss franc(1.0596) and New Zealand "kiwi" dollar(0.7187).

Tomorrow's rate announcements by the BOE and ECB are scheduled for 11:00 GMT and 11:45 GMT, respectively.

USD/JPY Chart - The U.S. dollar reaches highest exchange rate since January against the Japanese yen today in forex trading(4H chart).

Forex Chart

tags: cad, ivey business, dollar, forex trading, currency markets

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