Institute Of Supply Management Index Increase

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Institute Of Supply Management Index Increase

The US dollar is up on news of an Institute of Supply Management Index increase. As United States manufacturing expands it is bringing the US economy with it. The Institute of Supply Management is a nearly century old not for profit organization. Its monthly manufacturing report on business is closely watched as an economic indicator. According to the May report the US economy has grown for thirty-five months in a row and US manufacturing has grown for thirty-three months. According to the report, employment, production, and new orders all increased while raw material costs remained stable. Despite persistent worries about the effects of the European debt crisis on the US economy and dollar the Institute of Supply Management Index increase indicates a slow but steady rise of US manufacturing over the last three years. With China seeing a slowdown in exports and Europe looking at an austerity driven recession, the USA and US dollar have become attractive. There was some surprise at the ISM report as previous data had indicated a falloff in manufacturing in the Northeast region of the USA.

Many currency traders are still concerned about strength of the dollar over the long term even as the Institute of Supply Management Index rises. The concern is the large US debt and the measures needed to stimulate the economy and bring the economy this far out of a recession. The United States Federal Reserve has engaged in large purchases of US treasuries in order to drive interest rates down. This is down with printed money. The expected long term result of excessive use of the printing press is a devalued currency. However, the Federal Reserve’s first concern has been economic collapse and widespread unemployment. As these issues are successfully deal with the Fed has implied that there is current no more need for stimulus measures. However, the Fed is also keeping that option open. Thus currency markets have spent a lot of time following the action of the Federal Reserve, the European Central Bank, and other central banks for clues to where currency rates are going. As the Institute of Supply Management Index rises further it may be possible to successful trade the dollar using real economic news and not pronouncement of monetary policy. To a degree huge economic events such as Euro Zone economic contraction can be masked by the measures of central banks and government policy makers.

As the Institute of Supply Management Index rises so has the dollar, for the time being. Unfortunately there is a plethora of bad news in the world. The Chinese real estate market is said to be ready to collapse and exports from the Asian powerhouse have fallen off of late. China is making efforts to let the Yuan float with the market. It would like for its currency to join the ranks of reserve currencies of the world.

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Institute Of Supply Management Index Increase

  1. 1. Institute of SupplyManagement Index increase
  2. 2. To see a complete version of this presentationand to obtain our free EBook follow this link:http://portal.sliderocket.com/BLOUC/Institute-Of-Supply-Management-Index-IncreaseRead the Forex Conspiracy Report for insightsinto trading foreign currencies. Get your copyathttp://portal.sliderocket.com/BLOUC/Institute-Of-Supply-Management-Index-Increase
  3. 3. The US dollar is up on news of an Institute ofSupply Management Index increase.As United States manufacturing expands it isbringing the US economy with it.The Institute of Supply Management is anearly century old not for profit organization. www.ForexConspiracyReport.com
  4. 4. Its monthly manufacturing report onbusiness is closely watched as an economicindicator.According to the May report the US economyhas grown for thirty-five months in a rowand US manufacturing has grown for thirty-three months. www.ForexConspiracyReport.com
  5. 5. According to the report, employment,production, and new orders all increasedwhile raw material costs remained stable. www.ForexConspiracyReport.com
  6. 6. Despite persistent worries about the effectsof the European debt crisis on the USeconomy and dollar the Institute of SupplyManagement Index increase indicates a slowbut steady rise of US manufacturing over thelast three years. www.ForexConspiracyReport.com
  7. 7. With China seeing a slowdown in exportsand Europe looking at an austerity drivenrecession, the USA and US dollar havebecome attractive. www.ForexConspiracyReport.com
  8. 8. There was some surprise at the ISM reportas previous data had indicated a falloff inmanufacturing in the Northeast region of theUSA. www.ForexConspiracyReport.com
  9. 9. Many currency traders are still concernedabout strength of the dollar over the longterm even as the Institute of SupplyManagement Index rises. www.ForexConspiracyReport.com
  10. 10. The concern is the large US debt and themeasures needed to stimulate the economyand bring the economy this far out of arecession. www.ForexConspiracyReport.com
  11. 11. The United States Federal Reserve hasengaged in large purchases of US treasuriesin order to drive interest rates down.This is down with printed money. www.ForexConspiracyReport.com
  12. 12. The expected long term result of excessiveuse of the printing press is a devaluedcurrency.However, the Federal Reserve’s first concernhas been economic collapse and widespreadunemployment.As these issues are successfully deal with theFed has implied that there is current no moreneed for stimulus measures. www.ForexConspiracyReport.com
  13. 13. However, the Fed is also keeping that optionopen.Thus currency markets have spent a lot oftime following the action of the FederalReserve, the European Central Bank, andother central banks for clues to wherecurrency rates are going. www.ForexConspiracyReport.com
  14. 14. As the Institute of Supply ManagementIndex rises further it may be possible tosuccessful trade the dollar using realeconomic news and not pronouncement ofmonetary policy. www.ForexConspiracyReport.com
  15. 15. To a degree huge economic events such asEuro Zone economic contraction can bemasked by the measures of central banksand government policy makers. www.ForexConspiracyReport.com
  16. 16. As the Institute of Supply ManagementIndex rises so has the dollar, for the timebeing. Unfortunately there is a plethora ofbad news in the world. www.ForexConspiracyReport.com
  17. 17. The Chinese real estate market is said to beready to collapse and exports from the Asianpowerhouse have fallen off of late.China is making efforts to let the Yuan floatwith the market. www.ForexConspiracyReport.com
  18. 18. It would like for its currency to join theranks of reserve currencies of the world.China has been under a lot of pressure to letthe Yuan float up with the market. www.ForexConspiracyReport.com
  19. 19. However, an economic hard landing in Chinacould actually drive the Yuan down.As the dollar recovers, trading an Asiancurrency decline becomes a possibility. www.ForexConspiracyReport.com
  20. 20. For more insights and useful informationregarding the Forex markets and foreigncurrency trading, visit
  21. 21. www.ForexConspiracyReport.com

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