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.