Profit-Taking Paint Nikkei
Nikkei fell as continued profit-taking after strong rally since mid-October. Investors seemed reluctant to push up the index higher as the easing of a weaker yen.
USDJPY traded now 118.06; looks difficult to continue the momentum weakened after yesterday won the weakest level 7 years 118.96. A weaker yen is one pillar of the index rallied in the last month that the easing of the weaker yen means less positive catalyst for the stock market of Japan. Nikkei futures down 0.52% and is now trading at 17220.
Investors also looked wary of political risk in Japan as Japanese Prime Minister Shinzo Abe will dissolve parliament today in preparation for an early election on 18 December.
Abe’s Party-led coalition is predicted to win elections next month and this can provide a greater mandate for Abe to run Abenomics policy. Critics of Abenomics pretty rose after data earlier in the week showed the return of recession in Japan after Tokyo to raise the sales tax in April.
Technically, the index on the trading session today, Friday (21/11) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 17100 and 17050. If it fails at 17 165, then the next index is expected to tend to retest the resistance level of 17200 and continued until the possibility of being in the 17250 area.
Goldman Predict weakening Euro To 2015
Projection weakening the euro against the dollar as the difference of monetary policy in the US and the euro zone is the reason recommendation of Goldman Sachs Group Inc. to their clients for 2015. Goldman Sachs predicts the euro will weaken to the level of $ 1.15 within the next 12 months and advise their clients to use option strategies to reap the benefits of the movement. Currently the euro traded at around $ 1.2555.
“The US economy, leading to a nice closure in 2014, will continue to expand at a rate above the trend,” according to Francesco Garzarelli strategic head of Goldman, in London. “This will push real interest rates are progressive, and trigger a dollar appreciation. monetary policy will depart later between the eurozone and the US, showed differences in growth rates and inflation outlook. ”
Technically, today’s trading session on Friday (21/11), the pair Euro-dollar likely to move in a positive trend.
The strengthening of the Euro mainly expected soon reexamine the minimum resistance at 1.2600 and 1.2650 maximum. Meanwhile, if the Euro was unable to break and stays below 1.2551 then another alternative scenario that Euro chance to test support in 1.2500 and 1.2450 area.
US Inflation Data Managed To Strengthen Gold Prices
LLG gold price at the close of trading on Thursday Yesterday monitored closed with significantly strengthened early this morning. Strengthening of the gold price in the LLG early this morning triggered by positive sentiment from the US core inflation data.
US core inflation data release false expectations successfully tracked back to lift gold prices LLG on Thursday last. US core inflation rose from 1.7% reported 1.8% to be strong enough to be used as a foundation reinforcement of the gold price as an indication of the US economy is not good. The impact of these factors, the price of gold was closed up early this morning.
In addition to the encouragement of US core inflation data, the data sector US workers also quite give impetus to the strengthening of the gold price. Data release initial jobless claims last week were revised from 290,000 to 293,000 and the data release this week is predicted to fall to 285,000 was only at the level of 291,000. even though the data is still quite positive with a decrease, but levels were still below expectations enough positive sentiment for gold nutrient.
When the data from the US economy sentiment towards gold price movements tend to be positive, European data was also enough to give impetus to the strengthening of the gold price. Consumer confidence data release EU worsen with penurnan from level to level -11.1 -11.6 and quite far from the expectations at -11.6 impact on the strengthening of buying gold.
At the close of trading on Thursday Yesterday, gold prices rose significantly LLG closed early this morning. Gold prices in the early hours this morning LLG closed up 0.93% to $ 1193.75 price level / t oz or rose $ 11.05 / t oz.
While at the close of trading on the Comex gold futures, gold futures prices closed lower it early this morning. Comex gold futures prices for December 2014 contract closed down $ 1,190.9 / t oz or lower $ 3 / t oz.
Analyst predicts the price of gold will be more likely to weaken in today’s trading. It was based on the strong position of the US dollar value of potentially mendisinsentif impulse buying when relatively weak fundamental data on the data release today. Related to price movements, predicted gold prices will weaken to try to penetrate the $ 1180 level with advanced potential to $ 1,175. However, if the precipitous reinforcement, the price will try to break through the level of $ 1,205 with further potential to $ 1,210.
Technically, today’s trading session on Friday (21/11), the pair Euro-dollar likely to move in a positive trend.
The strengthening of the Euro mainly expected soon reexamine the minimum resistance at 1.2600 and 1.2650 maximum. Meanwhile, if the Euro was unable to break and stays below 1.2551 then another alternative scenario that Euro chance to test support in 1.2500 and 1.2450 area.
