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American Payrolls Adds 223,000 in Strong Growth

  • DAR Wong
  • 4 June 2018

Fundamental Outlook   The U.S. adds higher payroll in May while GDP grows. The coming FOMC meeting in mid-June yields high chance for another rate hike. Eurozone climbs in consumer prices while Italy sinks into sovereign debt after political risk erupts. U.K. steps up manufacturing with higher lending to consumers.

The U.S. Conference Board of Consumer Confidence grew 128.0 in May and matched forecast. Another report on prelim GDP grew 2.2 percent ended March on quarterly basis.

The U.S. jobless claims for the week ended 26 May slid to 221,000 and better than forecast. Consumer spending rose 0.6 percent in April and best in 5 months’ record. The ISM manufacturing index grew 58.7 in May and highest in 3 months.

On Friday, American non-farm payroll added 223,000 jobs in May and way above forecast, giving signals of possible rate hike in mid-June. Unemployment rate fell to 18-year low at 3.8 percent.

President Trump administration says the government will release before 15 June on a list of Chinese imported goods worth USD50 billion to be imposed with 25 percent tariff.

China’s Government reports the manufacturing index remained strong at 51.9 in May while services index rose 54.9, both in steadfast pace. Another private report on Caixin manufacturing index grew to 51.1 in May and stayed on growing track.

German retail sales rose 2.3 percent in April and positive for the first time in 5 months. The prelim consumer prices grew 0.5 percent in May and best in 3 months’ record.

Eurozone flash estimate for consumer prices over 19 nations rose 1.6 percent in May from a year ago. Core prices grew 1.1 percent on annual basis. Both are above forecast and higher than previous month.

Political crisis in Italy might render the country to go for another poll on 29 July. Waning investors’ confidence in Italy has unwrapped the national debt at USD2.4 trillion that is larger than Greek debt.

U.K. net lending to consumer borrowers rose GBP5.7 billion in April and better than revised GBP4.4 billion in previous month. Markit reports the U.K. manufacturing index at 54.4 in May and higher than 53.9 in April.

 

Technical Forecast   USD/JPY rebound after the support at 108.00 remained strong last week. The trend will likely trade from 108.50 – 110.50 region in coming week amid sideways trend. We reckon traders will consolidate their positions for a while before deciding into making a new directional trend.

EUR/USD reversed after hitting 1.1509 bottom last week. Market has been dropping for 7 weeks amid rising Dollar and might continue higher. This week, we foresee the trend will trade from 1.1550 – 1.1850 region in mixed sentiment. Short-covering is expected for some profit-taking.

GBP/USD slows down in falling but will still be suppressed at 1.3450 level in case of recovery. The trend is rather uncertain as the dual forces will struggle from 1.3200 – 1.3450 this week. Breaking beneath 1.3200 support will slide to 1.3050 region before real bargain-hunting will emerge.

 

Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work.

DAR Wong is a registered fund manager in Singapore with 27 years of global trading experiences. You may reach him at dar@pwforex.com


About the Author
DAR Wong (Singapore)
An international speaker with 27 years of trading experience in the global financial markets, DAR is a Market Master and author of “Living Daylight in Stock Market: Monetizing Your Profits in 8 Days”.

DAR Wong is an active market trader, registered fund manager, educator and author.He began his career in 1989 as an institutional Futures trader with Bank of America. DAR Wong specializes in trading global derivatives and financial markets. He has 26 years of experience accumulated through tenure with Bankers Trust, Barclays Bank, Citigroup (Smith Barney Shearson Inc) and as an independent trader.

DAR is the author of “8 Ways to Invest in China’s Emerging Market” and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional traders and active investors.

He is a popular and sought after international speaker who has presented to financial professionals and investors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East (UAE).

DAR is registered with NASD (now known as FINRA) series 3 and 5 as approved by National Futures Association (NFA) of USA and holds a current portfolio as Fund Strategist and Advisor with Dektos Investment registered with Monetary Authority of Singapore.

DAR is profiled as “One of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading “. In January 2015, DAR was honored with Outstanding Award for International Financial Market Analysis granted by ASEAN Commerce (Thailand).

DAR is the author of "8 Waysto Invest in China's Emerging Market" and contributes frequently to regional media, including financial TV/Radio programmes, newspapers and magazines for professional tradersand active investors.1

He is a popular and sought after international speaker who has presented to financialprofessionals and inverstors throughout the region including Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China,Cambodia, Myanmar, Philippines, Sri Lanka, India, South Korea, Laos, Vietnam, United Kingdom and Middle East(UAE).2


Year
2003 - Set up ASPRI to provide hedging advisory for corporate clients and training for financial professionals
2009 - Released first book “8 Ways to Invest in China’s Emerging Market”
2010 - Profiled as “one of the most successful traders – Market Masters” in Brent Penfold’s bestselling book “The Universal Principles of Successful Trading” along with Larry Williams, Andrea Unger, Michael Cook, and Daryl Guppy etc
2011 - Received “Spirit of Enterprise”awarded by Singapore Management University in Singapore
2012 - Honored with Individual Diamond Career (Thailand) awardedby Royal Privy Council of Kingdom of Thailand
2013 - Appointed Vice Chairman of ASEAN-China Commerce Association and led a delegationtothe annual China-Asean Expo in Guangxi Province, China
2014 - Fund Manager cum Director in Dektos Investment Corporation registered with Monetary Authority of Singapore
2015 - Released new book “Living Daylight in Stock Market - Monetizing Your Profits in 8 Days” in January
2015 - Honored with Outstanding Award in International Financial Market Analysis awarded by ASEAN Commerce (Thailand)
2016 - Honored with Medal of Integrity by Royal Councilin Palace of Palembng, Indonesia

References

1.TV programs on ChannelNewsAsia (Singapore);Radio on 95.8 Capital (Singapore); Newspapers such as The Borneo Post (Malaysia), 资汇报 (Malaysia); Regional financial magazines such as The Analyst (India), 东盟商界(ASEAN, China), 资本杂志 (Malaysia).

2.Spoke at events for CME Group, Euronext LIFFE, Tokyo Commodity Exchange, Singapore Exchange, Korea Exchange, Bursa Malaysia, Thailand Futures Exchange, Jakarta Futures Exchange, Indonesia Commodity and Derivatives Exchange, Tokyo Commodity Exchange, Interactive Brokers, Xinhu Futures, Hangzhou Money Fair, China (Shenzhen) International Finance Expo, China (Guangzhou) International Finance Expo, Euromoney, CIMB, Maybank, RHB, UOB Bank, Asia Trader & Investor Convention, Global Rubber Conference, International Rubber Conference, Malaysia Rubber Board, International Rubber Research and Development Board,Malaysia Ministry of Agriculture, Rubber Industry Smallholders Development Authority, Vietnam Rubber Association, Cambodian Rubber Association, Bureau of Agriculture Research Philippines, Myanmar Rubber Planters & Producers Association etc.


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