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Markets directionless ahead of US consumer....>

FOREX
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.

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