Markets directionless ahead of US consumer....>

FOREX: Markets directionless ahead of US consumer spending report

- USD/JPY's counter-trend trade continues Friday, with JPY one of the firmest in

G10 despite another leg higher for equity markets. Continental indices are up

0.5-1.0%, with tech, industrials and materials outperforming while defensive

health care names are at the bottom of the pile.

- GBP is softer, with GBP/USD trading either side of the 50-dma. A break below

yesterday's lows at $1.2389 would be a bearish catalyst, opening June lows at

$1.2336.

- Elsewhere, currencies are pretty directionless with markets awaiting further

COVID updates from southern and western US states. Implied vol gauges are

generally lower, with DMFX vols leading the declines. AUD/USD 1m vols are

printing multi-week lows and below 12.5 points.

- US personal income/spending numbers for May are the data highlight Friday. The

updated personal savings rate could prove interesting after the prior report saw

the metric hit an alltime high at 33%. Final Uni. of Michigan sentiment number

also crosses.