Another useful tool in the world of forex trading is the Ivey Purchasing Managers Index. In a nutshell, this index measures the change in purchases made by corporate executives.
Economic growth that may affect the decisions of a savvy forex broker or trader can be sensed from this index as it hints to the willingness, or lack thereof, of a key sector of businesses to spend money on expansion efforts or other goods and services that may be considered expendable in times of a weak economy.
In other words, the Ivey Purchasing Managers Index can serve as an FX trading indicator by demonstrating the current levels of business optimism.

FX Trading Importance

An attentive forex broker or trader will often use the Ivey Purchasing Managers Index as an economic indicator. If this index predicts optimal economic conditions, then business are likely to spend more in an effort to accommodate a future increase in demand for goods and services. The economy and FX trading will be similarly affected.