American Payroll Climbs Higher than Forecast American Payroll Climbs Higher than Forecast | DZHI - DZH International 
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American Payroll Climbs Higher than Forecast

  • DAR Wong
  • 7 August 2017

Fundamental Outlook   The U.S. economy reveals slight inflation on growth after home sales risen and firm payroll are consolidating. China maintains in good growing pace. Bank of England remains policy unchanged but expect 2 rate hikes in the coming 3 years.

The U.S. pending home sales rose 1.5 percent in June and jumped from minus 0.7 percent revised in May. Institute of Supply Management reports the manufacturing index for July grew to 56.3 and maintained in growth pace. Another separate report from the same source on services index grew to 54.7 in good rhythm.

American personal spending rose 0.1 percent in June and matched forecast, after May was revised at 0.2 percent growth. Jobless claims dropped slightly to 240,000 in the week ended 29 July from previous week 245,000.

Factory orders rose 3.0 percent in June and held best record in past 3 years. The U.S. payrolls grew 209,000 above forecast in July while unemployment dipped 4.3 percent.

China Government reports the manufacturing index at 51.4 in July and matched forecast. Another report on services index also stays in pace at 54.5.

On external side, the independent body on Caixin report says China’s manufacturing index rose to 51.1 in July and above forecast while Caixin services index grew 51.5 in July.

German retail sales rose 1.1 percent in July and climbed for 2 consecutive months. In Eurozone, consumer prices rose 1.3 percent while core prices up 1.2 percent on year basis, both moving in growing pace.

Among the 19 nations, Spanish manufacturing grew at 54.0 while German manufacturing rose to 58.1 in July, both in good growth. On overall in Eurozone, prelim GDP ended in Q2 grew 0.6 percent and in line with forecast.

Markit in UK reports the manufacturing index grew to 55.1 in July and better than revised 54.2 in previous month. Construction index dropped to 51.9 in July from 54.8 in June, showing sign of slowdown in housing demand. Services index rose 53.8 in July and matched forecast.

Bank of England holds interest rate unchanged at 0.25 percent. Policymakers forecast possibly 2 impending rate hikes in the coming 3 years. Asset purchase program maintains at GBP435 billion for government bonds and GBP10 billion in corporate bonds.

 

Technical Forecast   USD/JPY recovered on Friday upon closing for profit. Market holds well at 109.50 – 109.80 region as firm support while aiming to consolidate this week. We forecast the trend will trade higher to 112.50 as recovery in mixed sentiment. Risk control should be managed in case of extension beneath 109.50 level.

EUR/USD was countered by selling forces on Friday as we expected last week. Trend has fizzled from 1.1870 tops and probably will begin profit-taking this week. This week, we reckon the trend will go lower but supported at 1.1550 – 1.1600 area. Sideways will be expected after that in mixed sentiment while waiting for more directional news.

GBP/USD failed to conquer above 1.3250 last week and fell. This week, we predict the trend will re-test 1.2850 bottom in confluence with EMA200 support. Range trading is expected unless the movement reverses and pierces above 1.3250 in case of unforeseen circumstances. Risk management should not be compromised.

 

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.