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.

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.

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".

Amlin purchase bid boosts sterling

With very little economic news of note discharged on Tues, sterling announce gains against each the monetary unit and North American nation dollar as news poor of a £3.5 billion bid by a Japanese company, Mitsui Sumitomo Insurance, to buy Great Britain nondepository financial institution Amlin.

With investors recently pushing back dates on once the Bank of European country (BoE) area unit doubtless to boost interest rates within the Great Britain, sterling has found itself fraught, falling to its lowest levels since Gregorian calendar month towards the tip of last week. However, with a major purchase of sterling doubtless to require place within the wake of this deal, sterling found support across the board. Confidence appearance set to come back to British people economy generally

POUND REMAİNS WEEK AS CONFİDENCE REACHES RECORD LOW

The Great Britain strengthened a little yesterday as the retail sales rose last month, but the currency hasn't been able to retain its upward momentum and currently moves without a clear direction.

The volume of the UK retail sales increased 0.6 percent in October from September, following the 0.5 percent increase in the preceding month. That’s much better than market expectations of a 0.2 percent drop. The value of the sales rose 0.7 percent. The report noted that small stores performed better than larger ones.

RİNGGİT REMAİNS LOWER EVEN AS RİSK AVERSİON EASES

The Malaysian ringgit remains down on today’s trading session even as good news from Europe eased risk aversion sentiment among Forex traders.

Pessimism ruled the Forex market at the start of the session as Spain’s borrowing costs surged.

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.)

MEXICAN PESO UP AS STOCKS HIT RECORD HIGH

The Mexican currency had a winning performance versus several important currencies as stocks rallied on speculations that the Latin American economy will recover faster than other emergent markets.

DOLLAR RISE ON U.S. STOCKS DECLINE

After a very sharp fall versus the euro and high-yielding currencies, the dollar gained today as equities markets, specially in the U.S. ended a rally that started in the beginning of the week with renewed optimism regarding the Dubai debt.

AUSSIE DOLLAR ROCKETING ON RATES HIKE

The Australian dollar rose versus most of the 16 main traded currencies as interest rates were once again raised in the country, making the Aussie currency one of the most attractive investment in foreign-exchange markets this year.

BRAZILIAN REAL BENEFITS FROM CHINA’S MANUFACTURING

The Brazilian real, together with most emergent markets currencies, climbed today, specially versus the greenback and the yen, as risk appetite returned to markets on renewed optimism.

Dollar Slumps After Jobs Miss and Other Top Forex News.

The U.S. dollar fell against most of its rivals on Friday after U.S. jobs data came in under expectations, fuelling uncertainty over the Federal Reserve’s next move.

Official data showed that the U.S. economy added 169,000 jobs in August, less than the expected 180,000 increase, after a downwardly revised 104,000 rise the previous month.

Top Trade Idea for September 6th, 2013 – EUR/USD

The EUR/USD daily chart shows a clear downtrend. There’s potential for a strong read on non-farm payrolls tonight to drive further USD strength, and another leg down for EUR/USD. Leaning on the daily trend, traders may turn to the hourly chart for an entry signal.