US Personal Spending up Solidly Q2/16 to Date

US personal consumer expenditures (PCE) increased by 0.4% in May 2016, thereby matching market expectations.

• Controlling for the effect of prices, the volume of spending rose by 0.3% to build on an upwardly revised 0.8% (was 0.6%) April gain.

Nominal spending on non-durable goods rose by 0.6% (mainly reflecting a 0.5% volumes increase), and durable purchases increased by 0.3%. Spending on services rose by 0.4%, although most of the increase reflected higher prices, with 'real' services spending up by 0.1% in the month.
The headline PCE deflator remained under pressure.
May's spending increase outpaced a 0.2% monthly personal income gain. The household saving rate slipped to 5.3% from 5.4% in April, but recent declines have to date only reversed a surprising spike higher during the first quarter to a recent peak of 6.0% in March. The May rate is back at the same level as in December 2015.

EURJPY - Sees Recovery On Correction

EURJPY - The pair remains biased to the upside on correction though retaining its broader medium term downtrend. Support comes in at the 113.00 level where a break will aim at the 112.50 level. A turn below here will target the 112.00 level with a breach turning focus to the 111.50 level. Conversely, resistance lies at the 114.00 level. Further out, resistance comes in at the 114.50 level where a break if seen will threaten further upside towards the 115.00. Further out, resistance resides at the 115.50 level. All in all, EURJPY eyes further bearishness medium term but faces nearer term recovery.

FTSE Not Out of the Woods Yet

The bigger the drop, the bigger the rebound. That is what has happened with the FTSE 100 index in the aftermath of the UK's vote to leave the EU. In fact, the rebound has been so profound that the index has nearly made good all the losses suffered since the Brexit vote. Clearly, some investors who were lucky enough to come through the Brexit-stimulated drop relatively unscathed may now use this opportunity to either cut or reduce their stocks holdings or at least hedge their exposure by shorting the FTSE. This could especially be the case since we are approaching month-end; it would not look good on money managers who hold stocks in sectors that dropped massively post the Brexit vote. Added to this, bearish speculators who missed the original plunge may be tempted to step in and ride the next potential drop. So the FTSE could easily turn back lower.

US$ Index, Long Held Target above 100.50 Remains

Nearer term $ index outlook :
In the Jun 21st email, affirmed the bigger picture view of a bottoming (and potentially major bottoming, see longer term below) from that May 3rd spike low at 91.90. The market has indeed rallied since, breaking above the May 30th high at 95.95 and currently chopping near recent highs at 96.70/85 (also the ceiling of the bullish channel from that May 3rd low). Still a bigger picture bull with the recent break above the ceiling of the bearish channel from Dec adding to that view. On a short term basis however, there is scope for another few days/week of correcting before resuming the larger upmove (see in red on daily chart below). Nearby support is seen at 95.65/80 and the broken ceiling of the bearish channel from Dec (currently at 94.90/05). Resistance remains at the recent highs/ceiling of the bull channel from the May 3rd low (currently at 96.70/85) and 97.25/40 (62% retracement from the Dec high at 100.50). Bottom line : still a big picture bull but risk for a another few days/week of consolidating before resuming the larger upmove.

GOLD Completing Its Three Wave Recovery, 1260 Possible Turning Point

Gold made a nice pullback from the highs as expected and we are now looking for reversal signs as this corrective A-B-C may already be over. This corrective structure from the highs can be potentially completing here at 1.260. If we start to move up in impulsive manner we should reach a new high on this metal. As we know after every corrective pullback, a new impulsive structure tends to start.

Daily Technical Analysis

EURUSD

The EURUSD had a bearish momentum yesterday bottomed at 1.1239. The shooting star formation I showed you yesterday gave us a valid bearish signal. The bias is bearish in nearest term testing 1.1150 and the lower line of the bullish channel which remains a good place to buy with a tight stop loss. Immediate resistance is seen around 1.1285. A clear break back above that area could lead price to neutral zone in nearest term testing 1.1350 region. On the downside, a clear break and daily close below the bullish channel would activate my bearish mode with nearest target seen around 1.1000.

Crude Back at $50 as Traders Anticipate Sharp Draw in US Stocks

Oil prices are little-changed at the time of this writing after they snapped back into the positive territory and above $50 a barrel late in the day yesterday. Both oil contracts were lower in the first half of yesterday's session. This was possibly due to a rebounding US dollar and profit-taking ahead of US oil inventories data, especially since prices had risen rather sharply in the prior couple of days. Crude oil, which has been unable to decouple itself from risk assets, was also tracking the movements in equities and GBP ahead of the all-important Brexit vote on Thursday. The GBP/USD and stocks gave up their earlier advance yesterday after new polls showed support for Brexit had increased a tad. So oil was coming under pressure from this source, too.

EUR/USD – Euro Resumes Slide, Markets Eye Fed Rate Statement

EUR/USD has posted considerable losses on Tuesday, erasing the gains which marked the Monday session. The pair is trading slightly above the 1.12 level. On the release front, Eurozone Employment Change Industrial Production. Both indicators beat their estimates. In the US, today's highlights are Core Retail Sales and Retail Sales. The estimate for both reports stands at 0.4%.
All eyes are on the Federal Reserve's policy meeting, which will conclude with a rate statement on Wednesday. The markets have written off a rate hike in June, while a July move remains unlikely, according to the CME Group. The chances of a June hike are just 1.9% compared to a 26.3% in May. The chances of a July hike is 17.9%, compared to 43.2% in May. The sharp drop in market sentiment for a rate hike can be attributed to the dismal US Nonfarm Payrolls report as well as some back pedaling by Fed over the past few weeks.

USD/JPY – Yen Edges Lower, Fed Rate Statement Looms

The Japanese yen has edged lower, as the yen continues to show limited movement. USD/JPY is slightly below the 106 line. On the release front, Japanese Revised Industrial Production slipped to 0.5%, within expectations. In the US, today’s highlights are Core Retail Sales and Retail Sales. The estimate for both reports stands at 0.4%.
USD/JPY continues to show little movement, but the yen has recorded strong gains against the euro and the British pound. EUR/JPY and GBP/JPY are at 3-year lows, in response to continuing uncertainty over the Brexit referendum, as the “Leave” camp has gained strength in recent polls.

US Retail Sales Rise Again in May

In US retail sales rose by a stronger than expected 0.5% in May 2016 (compared to market expectations for a 0.3% increase) to build on a strong April gain.

Excluding the auto sector, sales rose by 0.4% with 'control' sales (retail sales ex-autos, gas stations, and building material stores) also posting a 0.4% increase that built on an outsized 1.0% jump in April.

Aussie Edges Lower as Australian Business Confidence Softens

The Australian dollar has posted small losses on Tuesday, continuing the lack of activity which marked the Monday session. The pair is trading at 0.7360 in the North American session. On the release front, Australian NAB Business Confidence dipped to 3 points. Later in the day, Australia releases Westpac Consumer Sentiment. In the US, Core Retail Sales matched the forecast with a gain of 0.4%, while Retail Sales edged above the forecast, climbing 0.5%. On Wednesday, the Federal Reserve will release its rate statement, with the markets expecting no change to interest rate levels.

Pound Sterling US Dollar Exchange Rate Forecast GBP USD to Drop on Strong US Jobs Data

Euro Rallied Yesterday following Shock ECB Decision

The euro (currency : EUR) stole the limelight in the global currency markets yesterday afternoon, as the latest European Central Bank policy announcement saw President Mario Draghi announce a distinctly underwhelming set of monetary policy alterations. 

Hawkish Yellen Improves Fed December Rate Hike Predictions

However, thing are different, very different, on the other side of the Atlantic. Draghi’s US counterpart, Federal Reserve Chair Janet Yellen, made some eyebrow-raising comments to Congress shortly after the Italian moneyman had left the stage. 

What is Forex Trading?

Foreign Exchange or FX or Forex trading is the trading in currencies. FX market is the largest financial market in the world, providing the highest liquidity. It features a trade volume of $3.2 trillion and more everyday!

FX trade is famous for its staggering profits as well as for its high risks. This is a decentralized market. There is no tangible platform where buyers and sellers meet. Trader's trade through a network, online is the most preferred one. This market is spread across many time zones of the world. The market never sleeps. It is open 24 hours for 5 and half days a week.

Knowing Forex Better

FX is the medium through which traders exchange currencies of different countries at a price influenced by the market. You might wonder: why trade currencies? One of the reasons is payment of services and products by global companies. Another reason is the forecast of exchange rate movements and an urge to make the most of such fluctuations.

Some of you might ponder: why do exchange rates fluctuate? Well, the value of currencies fluctuates because of the constant change in their demand. The varying rates in Forex trading show the variation in demand.

Becoming A FX Trader

In this trading, you buy a currency when its value is less and sell it when its value is high. Sounds simple, right? Well, the trick is to know WHEN to buy or sell. The entire game revolves around this "when". Fortunes have changed because people did the right thing at the right time. On the other hand, some people have also lost tremendously because they failed to recognize the right time to make the moves. Also, whether you should act on impulse or be always rational is also a matter of consideration in Forex trading.

Currency prices are controlled by a combination of factors, unlike share prices that depend on the profit of companies. The challenge of currency trading lies in forecasting the value of currency. A bigger challenge lies in making the right moves after the forecast.

The good thing about FX trade is the availability of "practice accounts" for beginners. You can get them through most FX brokers. You practice trading virtual currencies based on real exchange prices. It gives you a sense of this trade. When you plunge into the real thing, you don't feel like an alien. Besides this, you can research on Forex trading. There are many websites providing thorough information on how to trade in foreign currencies. They guide you and familiarize you with the strategies used by people who have made millions through FX. Guess what? You can also enroll in FX educational courses to master the art of buying and selling currencies!

No matter what anybody says, the fact is you learn the tricks only when you try out Forex trading. Nobody arrives here as the winner. You need to understand this kind of trade, consult with brokers or financial advisors, and keep a tab on the market trend to gain something out of this high-risk "gamble".

New Zealand suffers as central bank cuts interest rates.

It was an occupied day for New Zealand yesterday, reinforcing in expectation of the official money rate and Rate articulation; at the same time, fell after the discharge. The money rate was sliced from 3.00% to 2.75% as the New Zealand national bank turns around the driven ascent in rates throughout the most recent year. The national bank highlighted that further rate cuts will be information ward and now a few reporters anticipate that rates will be cut further one month from now again until it come back to the 2.5% figure last seen in October 2013. 

Somewhere else, the Canadian dollar revitalized as national bank voted to keep premium rates on hold at 0.5%, whilst building grants beat desires, in any case, still edged around 0.6% in July.

What is forex?

Forex stands for foreign exchange. Sometimes its also called FX.

A simple way to understand the foreign exchange market is to think of it as changing money when you travel abroad. When you alter money, you sell money and buy another at the current exchange rate. This is because the worth of your own money is not equal to the worth of the money you require to buy. In effect, you have traded money and this is similar to foreign exchange trading.

EURO RECEIVES AID FROM IMPROVED MORALE

Euro is getting a little help today, thanks to improved morale in the eurozone. Even though the 17-nation currency is struggling against the US dollar, the euro is higher against some of its other major counterparts. There is a lot for Forex traders to think about as this week draws to a close.

What is Forex Signal ?

A Forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time.The signal is generated either by a human analyst or an automated Forex robot supplied to a subscriber of the forex signal service. Due to the timely nature of signals, they are usually communicated via email, website, SMS, RSS, tweet or other relatively immediate method.

Source : Wikipedia 

Types of forex signals

Services provided fall into four categories:

1. Unpaid/free signals
2. Paid signals from one provider whether by personal analysis or algorithmic analysis
3. Paid signals aggregated from multiple signal sources or 'systems'

What Is Forex Margin Trading?

In the world of forex, margin trading (or "buying on margin", or "trading on margin") means trading with short-term borrowed capital. Margin is thus a form of borrowed money or debt. This borrowed capital is used to buy much more currency that you’d be able to purchase ordinarily (unless you have hundreds of thousands of dollars available). In the forex market, currencies are usually traded in lots, with a standard lot being $100,000. (The forex market is a highly leveraged market.)

CANADIAN DOLLAR ADVANCES ON GDP FIGURES

After Canada posted positive quarterly gross domestic product figures, the national currency benefited on the economic outlook and optimism, advancing versus most of the 16 main traded currencies in foreign-exchange markets.