Sterling Continue Weakening
Revised UK economic growth data have not been able to boost the performance of the pound sterling in trading on Tuesday. The British currency in the Asian session today (01/6) back continues weakening against the dollar.
Office for National Statistics on Tuesday revised up its first-quarter UK economic growth to 0.4% from the previous release of 0.3%. At the same time the current account deficit reported to be reduced to – £ 26.5 billion, from the previous month – £ 28.9 billion, but still larger than economists’ expectations of – £ 23.7 billion.
Suppressor factor sterling on Tuesday is a statement of member Monetary Policy Committee Bank of England, Andy Haldane. Haldane also BoE chief economist, said rising interest rates too quickly can cause a recession in the UK, and he plans to propose maintaining interest rates of 0.5% in the short to medium term.
The focus of the currency pair sterling-dollar today among UK manufacturing activity data that will be released this afternoon at 15:30 pm, and US employment data followed the private sector at 19:15 GMT. GBPUSD traded at around 1.5697 at 09:07 GMT, after briefly touching daily lows 1.5673, the highest level 1.5714
Technically, the trading session today, Wednesday (01/07), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum Support at 1.5625 and maximum 1.5575. Meanwhile, if the Pound able to break and hold above 1.5692, then the other alternative scenario that is likely to test resistance Pound in 1.5730 and 1.5780 area.
Distressed Gold Strengthening Dollar
Gold prices hit the strengthening dollar against the euro on prospects of a Greek bankruptcy because of failure to pay its obligations to the International Monetary Fund (IMF) and investor nervousness over the long-term prospects bullion. Gold tends to benefit in conditions of instability in the financial markets. But the impact of a Greek bankruptcy tends to moderate and not predictable enough to eliminate the bearish impact of the rise in US interest rates in September.
Greek crisis makes Euro remains under pressure and added impetus for the strengthening of the Dollar. Greek referendum at the weekend to extend the turmoil in financial markets weighs on the Euro zone that once the single currency trading. Additionally, a hawkish comment from Federal Reserve Vice Chairman, Stanley Fischer, was also profitable gold weaken the Dollar and vice versa. According to Fischer, the central bank need not wait to hit the target to begin to adjust policies and very optimistic projected US economic growth will return to a level of 2.5% in the second quarter and a strong labor market.
The gold price ended at the level of $ 1173.30 per troy ounce, with daily highs $ 1,180.43 and $ 1,166.66 daily lows.
Technically, gold in today’s trading session on Wednesday (01/07) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
Early Kospi Mixed Moving
In early trading stock exchanges South Korea beginning this July (1/7), opened with a moving Kospi index mixed, where Kospi futures opened lower mixed by macro data released by the government.
Data released a report that shows the trade balance surplus increase in June to $ 10.20B from the previous release at $ 6.30B. However, on a monthly basis inflation data showed a significant decrease to 0% from the previous release results at 0.3%, while the annual increase to 0.7% managed to exceed the expectations of economists as well as the results of previous releases at 0:57% and 0.5%.
The shares traded contributing to enhancing this morning is the stock KEPCO Plant Service & Engineering 0.85%, LG Electronics 0:32%. While the ballast shares are shares amounting to 0.77% of KIA Motor, Hyundai Motor 1:01%, 0,24% shares of Samsung Electronics.
The movement of Kospi index opened higher this morning limited by 1.72 points or 0:08%, by becoming 2075.92 points from the previous closing position at 2074.20 points and achieved the highest position previously traded at 2075.02 and the lowest point at 2049.44 points earlier ,
But unlike the movement of Kospi index futures this morning, which opened lower limited by 0:06 points, or 0.03%, to be 252.21 points from the previous closing position at 252.27 points and reached the highest position previously traded at 252.39 points and the previous low at 250.20 points.
Based on the closing traded before, then Vibiz Analyst Research Center estimates that today’s Kospi index movement will try to penetrate the first resistance at 252.90 points with MA5 under BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 254, 10 points with central MA5 BB10 daily.
If the movement of the index managed to turn around the direction of weakening, it is expected to try to penetrate the first support at 251.30 points with MA5 under BB10 H4, if the movement is able to penetrate the first support is expected to try to penetrate the second support at 250.20 points with MA5 under BB10 H4.
Technically, the index on the trading session today, Wednesday (01/07) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first resistance level of 255.25 and 255.90. If it fails at 254.50, then the next index is expected to tend to retest the support level 254.10 and continued until the possibilities are in the 253.25 area.
