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.

Busier today following Labour Day in the US

Yesterday was a quiet day for data releases in the US, with only JOLTs job openings data released, which showed a figure that was slightly better than expected. This shows that there are continued job opportunities, which could be why the US Federal Reserve are not too worried about last week’s slump in non-farm employment change. We saw some movement in the US dollar, as sterling strengthened as a result of takeover talks at insurance giant Amlin.

There are more data releases from the US on the table today compared to the last couple of days. The weekly unemployment claims is expected to show a slight drop, while import prices are expected to decrease further due to the strengthening US dollar.

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

USD/JPY Forecast: Yen soars as US Retail Sales miss

Yen soars as US Retail Sales miss. The USD/JPY pair extended its pullback after being as high as 123.72 earlier this week, weighed by poor US Retail Sales data. The big miss helped the Japanese yen to resume its advance, and the USD/JPY now struggles around the 123.00 level. Technically, the 1 hour chart shows that the 100 and 200 SMAs stand well below the current price, with the largest offering a dynamic support in the 122.45 region,whilst the technical indicators head sharply lower in negative territory. In the 4 hours chart, the technical indicators have also turned strongly lower from overbought levels, but so far remain above their mid-lines, suggesting the bearish movement could be just corrective. Nevertheless, renewed selling pressure below 122.90 should lead to a test of the mentioned 122.45 level, while below this last, the slide can extend down to 122.00. To the upside, 123.30 is key, as selling interest should surge around the level, to maintain the bearish tone in place.

Support levels: 122.90 122.45 122.00

Resistance levels: 123.30 123.70 124.10 

Source:    www.fxstreet.com

BRAZİLİAN REAL DROPS ON CHİNA’S MANUFACTURİNG

The Brazilian real fell today, while yesterday it was at the seven-week low, as the report showed that China’s manufacturing is slowing.

HSBC Flash China Manufacturing PMI fell to 48.0 in November from 51.0 in October. The reading below 50.0 indicates a decline of the industry. The surging borrowing costs of the European nations add to the reasons that deter investors from buying the riskier currencies, like the real.

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?

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.

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.

POUND DOWN ON WEAKER THAN EU OUTLOOK

The pound started the week down versus the euro and the U.S. dollar as sentiment towards other wealthy nations in the world remain more positive than the U.K.’s economic perspectives, forcing investors to abandon pound priced assets to inject capital in more attractive currencies backed by fast recovering nations.

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.

YEN DROPS ON INTERVENTION TALKS

The Japanese currency declined versus most of the 16 main traded currencies after speculations rose that Japanese officials are ready to intervene on the current yen’s level, as it would be an obstacle for the Japanese economic recovery, decreasing competitiveness for the nation’s exports.

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.