Oil and the Canadian Dollar are Marching in Tandem
Date Posted: July 9, 2015
Read time: 1 min
BNN host Michael Hainsworth welcomes Frank Holmes to the program to help explain the recent lows in the price of crude oil. To start, Frank notes the importance of tracking the purchasing managers’ index (PMI) for commodity performance. He says that historically, PMI has acted as a useful forward-looking indicator for the performance of copper, iron and oil.
BNN host Michael Hainsworth welcomes Frank Holmes to the program to help explain the recent lows in the price of crude oil. To start, Frank notes the importance of tracking the purchasing managers’ index (PMI) for commodity performance. He says that historically, PMI has acted as a useful forward-looking indicator for the performance of copper, iron and oil.
Frank also notes that interestingly enough, the price of oil seems to be moving in synch with the Canadian dollar. As oil prices have fallen recently, so has the Canadian currency.
Tune in to the replay for the full discussion!
The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
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