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Japan Overall Bank Lending Jumps 3.0% On Year



Overall bank lending in Japan was up 3.0 percent on year in April, the Bank of Japan said on Wednesday - coming in at 553.486 trillion yen.
That's up sharply from the 2.0 percent annual increase in March.
Excluding trusts, bank lending gained 3.1 percent on year to 482.863trillion yen - up from 2.2 percent a month earlier.
Lending from trusts rose 1.7 percent to 70.622 trillion yen- up from 1.0 percent in the previous month. Lending from foreign banks surged 25.7 percent to 3.506 trillion yen.

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Australia Unemployment Rate Rises To 6.2% In April



The jobless rate in Australia came in at a seasonally adjusted 6.2 percent in April, the Australian Bureau of Statistics said on Thursday. That was up from 5.2 percent in March but was well beneath expectations for 8.3 percent.
The Australian economy lost 594,300 jobs last month to 12,418,700 - missing forecasts for a decline of 575,000 following the increase of 5,900 jobs in the previous month.
Full-time employment decreased 220,500 to 8,656,900 people and part-time employment decreased 373,800 to 3,761,800 people.
Unemployment increased 104,500 to 823,300 people. Underutilization rate increased 5.9 pts to 19.9 percent.
The participation rate was 63.5 percent in April, well shy of expectations for 65.2 percent and down from 66.0 percent a month earlier.
Monthly hours worked in all jobs decreased 163.9 million hours to 1,625.8 million hours.

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Australia Unemployment Rate Rises To 6.2% In April



The jobless rate in Australia came in at a seasonally adjusted 6.2 percent in April, the Australian Bureau of Statistics said on Thursday. That was up from 5.2 percent in March but was well beneath expectations for 8.3 percent.
The Australian economy lost 594,300 jobs last month to 12,418,700 - missing forecasts for a decline of 575,000 following the increase of 5,900 jobs in the previous month.
Full-time employment decreased 220,500 to 8,656,900 people and part-time employment decreased 373,800 to 3,761,800 people.
Unemployment increased 104,500 to 823,300 people. Underutilization rate increased 5.9 pts to 19.9 percent.
The participation rate was 63.5 percent in April, well shy of expectations for 65.2 percent and down from 66.0 percent a month earlier.
Monthly hours worked in all jobs decreased 163.9 million hours to 1,625.8 million hours.

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China Industrial Output Rises 3.9% On Year In April



Industrial production in China was up 3.9 percent on year in April, the National Bureau of Statistics said on Friday.
That exceeded expectations for an increase of 1.5 percent following the 1.1 percent decline in March.
The bureau also noted that retail sales fell an annual 7.5 percent - missing expectations for a drop of 7.0 percent after tumbling 15.8 percent in the previous month.
Fixed asset investment sank 10.3 percent on year, also shy of expectations for a decline of 10.0 percent after plunging 16.1 percent a month earlier.
The jobless rate came in at 5.8 percent, down from 5.9 percent in March. RSS feed

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Singapore Exports Rise Unexpectedly In April



Singapore's non-oil domestic exports increased unexpectedly in April, data from Enterprise Singapore showed on Monday.
Non-oil domestic exports increased 9.7 percent year-on-year in April, confounding expectations for a decline of 5 percent. Nonetheless, the pace of growth eased from 17.6 percent logged in March. Electronic NODX fell by 0.6 percent, while non-electronic NODX gained 12.8 percent.
On a monthly basis, NODX declined 5.8 percent in April, after a 12.8 percent rise in the previous month.
NODX to the top markets grew in April, though exports to China, Hong Kong, Malaysia, Indonesia and Thailand declined. The largest contributors to the growth were the US, the EU 27 and Japan, data showed.

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New Zealand Producer Price Outputs Add 0.1% In Q1



Producer price outputs in New Zealand were up 0.1 percent on quarter in the first quarter of 2020, Statistics New Zealand said on Tuesday - slowing from 0.4 percent in the three month prior.
Producer price inputs fell 0.3 percent on quarter after rising 0.1 percent in the previous three months.
On a yearly basis, outputs gained 2.2 percent and inputs were up 1.2 percent. Farm expenses price index (FEPI) were flat on quarter and up 1.0 percent on year, while capital goods price index (CGPI) rose 0.6 percent on quarter and 2.9 percent on year.
Salaries and wages rose 0.3 percent on quarter and 2.5 percent on year.

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Japan March Core Machine Orders Ease 0.4%



Core machine orders in Japan slid a seasonally adjusted 0.4 percent on month in March, the Cabinet Office said on Wednesday - standing at 854.7 billion yen.

That beat expectations for a tumble 0.7.1 percent following the 2.3 percent increase in February.

On a yearly basis, core machine orders sank 0.7 percent - again beating forecasts for a all of 9.5 percent following the 2.3 percent drop in the previous month.

The total value of machinery orders received by 280 manufacturers operating in Japan increased by a seasonally adjusted 3.0 percent on month and 0.9 percent on year in March at 2,289.0 billion yen.
Manufacturing orders fell 8.2 percent on quarter and 3.2 percent on year, while non-manufacturing orders added 5.3 percent on quarter and 0.9 percent on year.

Government orders surged 17.1 percent on month and 66.5 percent on year, while orders from overseas fell 1.3 percent on month and 14.4 percent on year. Orders through agencies sank 3.3 percent on month and 5.8 percent on year.

For the first quarter of 2020, core machine orders slid 0.7 percent on quarter and 1.0 percent on year. Total machine orders gained 3.9 percent on quarter and fell 0.7 percent on year in Q1.

Manufacturing orders added 1.8 percent on quarter and lost 3.4 percent on year in Q1, while non-manufacturing orders fell 5.1 percent on quarter and rose 0.6 percent on year.

Government orders soared 25.5 percent on quarter and 45.0 percent on year, while orders from overseas gained 8.7 percent on quarter and lost 8.7 percent on year. Orders through agencies gained 3.6 percent on quarter and fell 4.1 percent on year.

Core machine orders are now predicted to fall 0.7 percent on quarter in Q2 and 10.4 percent on year.

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Malaysia Consumer Prices Fall More-Than-Expected In April



Malaysia's consumer prices declined more-than-expected in April, figures from the Department of Statistics revealed on Wednesday.
The consumer price index declined 2.9 percent year-on-year in April, following a revised 0.2 percent decrease in March. Economists had expected a 1.6 percent fall. This was the second consecutive fall in prices.
Among the main components, prices for transport declined 21.5 percent annually in April and housing, water, electricity, gas and other fuels decreased by 2.2 percent.
Meanwhile, cost of food and non-alcoholic beverages rose 1.2 percent and prices for miscellaneous goods and services grew 2.3 percent. Cost for health and education rose by 1.2 percent, each.
On a month-on-month basis, consumer prices fell 2.7 percent in April.
The core consumer price inflation held steady at 1.3 percent in April.

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Malaysia Consumer Prices Fall More-Than-Expected In April



Malaysia's consumer prices declined more-than-expected in April, figures from the Department of Statistics revealed on Wednesday.
The consumer price index declined 2.9 percent year-on-year in April, following a revised 0.2 percent decrease in March. Economists had expected a 1.6 percent fall. This was the second consecutive fall in prices.
Among the main components, prices for transport declined 21.5 percent annually in April and housing, water, electricity, gas and other fuels decreased by 2.2 percent.
Meanwhile, cost of food and non-alcoholic beverages rose 1.2 percent and prices for miscellaneous goods and services grew 2.3 percent. Cost for health and education rose by 1.2 percent, each.
On a month-on-month basis, consumer prices fell 2.7 percent in April.
The core consumer price inflation held steady at 1.3 percent in April.

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European Economics Preview: Eurozone Flash PMI Data Due



Flash Purchasing Mangers' survey results from euro area and the UK are due on Thursday, headlining a busy day for the European economic news.
At 3.15 am ET, IHS Markit is scheduled to issue France's PMI data. Economists forecast the composite output index to improve to 32.0 in May from 11.1 a month ago.
At 3.30 am ET, Germany's flash PMI data is due. The composite index is seen at 34.1 in May versus 17.4 in the previous month.
At 4.00 am ET, Eurozone composite PMI data is due. The index is expected to advance to 25.0 in May from 13.6 in April.
In the meantime, industrial production and producer prices are due from Poland. Economists forecast industrial output to fall 10 percent annually in April, faster than the 2.3 percent decrease in March.
At 4.30 am ET, IHS Markit/CIPS publishes UK flash composite PMI data. Economists forecast the composite indicator to rise to 25.0 in May from 13.8 in April.
At 6.00 am ET, the Confederation of British Industry releases Industrial Trends survey data. The order book balance is forecast to fall to -59 percent in May from -56 percent in the preceding period.
At 7.00 am ET, Turkey's central bank interest rate announcement is due. Economists expect the central bank to cut its one-week repo rate to 8.25 percent from 8.75 percent.

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Bank Of Japan Launches New Lending Program


The Bank of Japan introduced a new lending program to help small and medium-sized firms and left its target for short-term interest rate and the bond yield target unchanged on Friday.
At the emergency meeting, the policy board of the BoJ unanimously decided to launch a lending scheme worth about JPY 30 trillion to support SMEs struggling to operate amid the spread of the novel coronavirus, or Covid-19.
According to the new scheme, the bank will provide funds to eligible counterparties against pooled collateral for up to 1 year at the loan rate of zero percent.
The board voted 8-1 to retain the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.
Also, the bank will continue purchase a necessary amount of Japanese government bonds without setting an upper limit so that 10-year JGB yields will remain at around zero percent.
As for CP and corporate bonds, the BoJ will maintain their amounts outstanding at about JPY 2 trillion and about JPY 3 trillion, respectively.

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Forecast for EUR/USD on May 22, 2020

EUR/USD
The euro grew during the first half of Thursday due to optimistic rates of European business activity for the current month: Manufacturing PMI of the euro area grew from 33.4 to 39.5, Services PMI showed even greater dynamics - an increase from 12.0 to 28.7. The euro has decisively reversed since the US session opened. US PMIs came out better than expected, but not as much as we expected: Manufacturing PMI grew from 36.1 to 39.8 against 39.3, Services PMI grew from 26.7 to 36.9 with 32.6 expected. Nevertheless, the trading volumes were comparable to those observed on May 18, which indicates a massive closure of purchases and even the opening of sales. A more interesting story awaits us next week, when sales of new housing, orders for durable goods, incomes and expenses of consumers will be published in the US.



The price was re-marked at the upper border of the price range and with the turn of the oscillator, Marlin headed down on the daily chart. The closest support for the price is the price channel line at 1.0918, below it is the MACD indicator line at 1.0888, overcoming it will confirm the euro's intention to go much deeper down to 1.0767 and 1.0578.



The signal line of the Marlin oscillator penetrated into the downward trend zone after forming a double divergence on the four-hour chart. The closest target is the 1.0888 level, at which the MACD lines coincide on both scopes. Consolidation under the level opens the way to the lower border of the range 1.0767.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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Singapore Cuts 2020 GDP Outlook



Singapore's economic outlook for 2020 was lowered further due to the deterioration in foreign demand forecast and the expected economic impact of the coronavirus containment measures.

The Ministry of Trade and Industry on Tuesday forecast the city-state economy to shrink "-7.0 to -4.0 percent" this year instead of "-4.0 to -1.0 percent projected in March.

The ministry said there continues to be a significant degree of uncertainty over the length and severity of the coronavirus, or Covid-19, outbreak, as well as the trajectory of the economic recovery, in both the global and Singapore economies.

Gross domestic product shrank 0.7 percent on a yearly basis in the first quarter, reversing a 1 percent rise in the fourth quarter 2019. The first quarter figure was revised from -2.2 percent.

On a quarter-on-quarter seasonally-adjusted annualized basis, the economy contracted 4.7 percent, a pullback from the 0.6 percent expansion in the fourth quarter of last year.

The manufacturing sector expanded by 6.6 per cent year-on-year on account of output expansions in the biomedical manufacturing, precision engineering and transport engineering clusters.

Meanwhile, the construction sector contracted 4.0 percent. Likewise, the wholesale and retail trade sector fell 5.8 percent and the transportation and storage sector declined 8.1 percent.
The accommodation and food services sector logged a sharp fall of 23.8 percent. At the same time, the information and communications sector grew 3.5 percent and the finance and insurance sector expanded 8.0 percent.

The business services sector shrank 3.3 percent in the first quarter.

A very strong performance from the biomedical manufacturing sector meant that Singapore's economy contracted much less in the first quarter than previously thought, Alex Holmes, an economist at Capital Economics, said.

But with a stringent lockdown in place at home and demand cratering abroad, the sector is unlikely to stop a huge contraction in the economy in the second quarter, the economist added.

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Technical Analysis of BTC/USD for May 26, 2020:

Crypto Industry News:
New strict rules, in which many ways of using digital resources are punishable by a fine or imprisonment, may soon become law in Russia.
New bills specifying how Russia should regulate cryptocurrencies were sent to the parliament of the country, the State Duma, earlier this week. Although the official site for the planned regulations has not yet been updated, both documents were published in the OrderCom telegram channel and were confirmed as authentic by the sources of the Russian news channel RBK.
Legislative proposals were reportedly written by employees of the Digital Economy think tank and the Skolkovo business accelerator. They are looking for a new version of the Digital Resources Act that has been stuck in the Duma for over two years, as well as cryptocurrency-oriented additions to the national criminal code.
The first bill would regulate digital currencies in Russia, or more precisely, prohibit the issuance and operation of digital currencies. It would even be forbidden to disseminate information on such activities.
Individuals and companies will not be able to accept digital currencies as payments, unless they are inherited, transferred to the debtors of a bankrupt company or confiscated as a result of a court decision. People with cryptocurrency should declare it at the tax office, as well as provide information on how to buy.
A second draft would introduce a new article in the Criminal Code imposing sanctions for illegal operations using digital resources. If the regulations are adopted, the issue of digital assets in Russia without permission to enter in the register, which is yet to be created in the central bank of this country, will result in a fine of up to two million rubles (almost $ 28,000). The same level of penalty is suggested for organizing operations with digital resources and cryptocurrencies without permission, while people would face fines of up to $ 2,800.
Buying a cryptocurrency for cash or a bank transfer from a Russian bank would be subject to a fine of up to one million Russian rubles ($ 14,000) or up to seven years in prison, depending on the scale of the contract. A similar penalty would apply to those who accept crypto for goods and services.
If such a business brings "particularly large" profits or particularly large damage to citizens and the state, the proposal would cause the person (s) involved to be imprisoned for up to seven years, or even forced labor.
Mention of the central bank register suggests that legislators are free to some officially sanctioned entities to issue and use digital assets, while most general operations would be banned.
According to the RBK report, Anatoly Aksakov, head of the Duma of the Financial Markets Commission, confirmed the authenticity of the documents, but stated that they had not been finalized.
Technical Market Outlook:
The BTC/USD pair has bounced from the level of $8,576 after breaking through the key trend line support located around the level of $8,800. The bounce is so far very shallow and the next the nearest resistance is located at the level of $8,919 and $9,013. On the other hand, the next technical support is seen at the level of $8,464 and $8,357.The momentum remains weak and negative, so the odds for another wave down are high.
Weekly Pivot Points:
WR3 - $10,568
WR2 - $10,245
WR1 - $9,478
Weekly Pivot - $9,098
WS1 - $8,333
WS2 - $7,968
WS3 - 7,231
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Analysis are provided byInstaForex.

 

European Economics Preview: French Consumer, Business Sentiment Data Due



Consumer and business sentiment survey results from France are due on Wednesday, headlining a light day for the European economic news.
At 2.00 am ET, Statistics Norway is set to issue unemployment and retail sales data. The jobless rate is forecast to rise to 4 percent in March from 3.5 percent in the preceding period.
At 2.45 am ET, France's Insee publishes consumer and business confidence survey results. The consumer sentiment index is forecast to fall to 92 in May from 95 in April. The business confidence index is seen at 85 versus 82 a month ago.
At 3.00 am ET, unemployment data from Hungary is due.
At 3.30 am ET, European Central Bank President Christine Lagarde is set to speak at the European Youth Event 2020. In the meantime, Statistics Sweden publishes producer prices for April. Prices had fallen 3.6 percent annually in March.
At 4.00 am ET, unemployment data from Norway and manufacturing Purchasing Managers' survey from Austria are due.

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Korea Rate Decision On Tap For Thursday



The Bank of Korea will wrap up its monetary policy meeting on Thursday and then announce its decision on interest rates, highlighting a light day for Asia-Pacific economic activity. The central bank is projected to trim its benchmark lending rate by 25 basis points, from 0.75 percent to 0.50 percent.

Australia will see Q1 numbers for capital expenditure and May figures for the business confidence index from ANZ. Capex is expected to sink 2.6 percent on quarter after falling 2.8 percent in the previous three months. The business confidence index had a score of -66.6 in April.
Taiwan will see May figures for its consumer confidence index; in April, the index score was 73.39.

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Japan Retail Sales Slide 9.6% On Month In April



The total value of retail sales in Japan was down a seasonally adjusted 9.6 percent on month in April, the Ministry of Economy, Trade and Industry said on Friday.
That was shy of expectations for a decline of 7.0 percent following the 4.5 percent drop in March.
On a yearly basis, retail sales tumbled 13.7 percent - also missing expectations for a drop of 11.5 percent after slipping 4.6 percent in the previous month.

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Philippines Manufacturing PMI Rises To 40.1 In May - IHS Markit



The manufacturing sector in the Philippines continued to contract in May, albeit at a slower rate, the latest survey from IHS Markit revealed on Monday with a manufacturing PMI score of 40.1.
That's up from the record low 31.6 in April, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, the rates of decline in output and new orders eased but remained sharp.
Employment levels fell steeply again, while output prices ricked higher as cost pressures rose.

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Philippines Manufacturing PMI Rises To 40.1 In May - IHS Markit



The manufacturing sector in the Philippines continued to contract in May, albeit at a slower rate, the latest survey from IHS Markit revealed on Monday with a manufacturing PMI score of 40.1.
That's up from the record low 31.6 in April, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, the rates of decline in output and new orders eased but remained sharp.
Employment levels fell steeply again, while output prices ricked higher as cost pressures rose.

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Ireland Manufacturing Downturn Continues In May



Ireland's manufacturing sector contracted at a softer pace in May, as the local and global economies remained in lockdown amid coronavirus outbreak, survey data from IHS Markit showed on Tuesday.
The seasonally adjusted AIB factory Purchasing Managers' Index, or PMI, rose to 39.2 in May from 36.0 in April. Any reading below 50 indicates contraction in the sector.
New orders remained weak in the midst of lockdown measures. Employment increased in May, but it signaled the second fastest rate of job shedding in nearly eleven years. Suppliers' delivery time lengthened in May.
Stocks of purchase signaled the slowest rate of input destocking in seven months. New export orders declined further at the second-fastest pace on record.
As many firms remained shut down in May, backlogs of work declined at the fastest rate since September 2011. Purchasing activity declined due to suspended output and fall in demand due to coronavirus pandemic.
On the price front, the survey showed that input prices fell for the third straight month in May and manufacturers reduced their charges for the third month and at the strongest rate since July 2019.
Manufacturers reported overall optimism regarding future output in May, following a record degree of pessimism in April.
"The AIB Irish Manufacturing PMI data for May paint a downbeat picture of the sector for the third month in a row as the lockdowns associated with the coronavirus pandemic continue to depress activity," Oliver Mangan, AIB chief economist said.

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