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.

Will today’s data release enable sterling to regain its footing in the market?

Widespread turmoil in the financial markets this week has seen mixed fortunes for sterling. With the so called “Great Fall of China” on Monday preceding a day of losses throughout European and US stocks, sterling fell to a two-month low against the euro on the back of short-term profit taking by investors. On the flip side, the British currency also rose to a one-month high against the US dollar, although it was unable to maintain these levels as the week progressed

With no economic data released from the UK throughout the week, sterling found itself under pressure against a resurgent US dollar as equities staged a recovery worldwide. Following Monday’s sharp fall against the euro, the British currency was able to pushed back marginally throughout the week, and the single currency was unable to hold onto its more advantageous position.

Today sees the first major data release from the UK of the week. Following a positive economic growth estimate earlier in the year, the second estimate of gross domestic product (GDP) is forecast to remain stable at 0.7% growth.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source: Smartcurrencyexchange

Sterling’s brief respite against the markets ends

Another tough day for sterling on Wednesday saw it fall to a two-and-a-half week low against a strong US dollar, whilst slipping close to Monday’s lows against the euro. With markets drawing breath on Tuesday, sterling was able to make marginal gains against the euro and US dollar but these were then erased throughout Wednesday thanks to a resumption in European and British stock declines saw sterling struggle across the board. Comments by Federal Reserve member Dudley which suggested a September interest rate-hike in the US was unlikely, but this was largely ignored by the markets as sterling continued to weaken.

Today sees the release of preliminary economic growth figures from the US for the previous quarter. This could have a significant effect on the markets, with growth expected to pick up to 0.7% compared to the previous year.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source:smartcurrencyexchange