Nikkei Gains Thin Impact Strengthening Yen
The Nikkei closed edged up 15.11 points, or 0.09 percent, at 16772.46karena stuck to rise higher as the yen continues to strengthen, trying to cope with the strengthening of Wall Street sentiment and rising crude oil prices.
Usually the yen is negative for exporters because it reduces their overseas profits when converted into local currency.
Data Releases Durable Goods Orders and Pending Home Sales which indicated decreased. If these results are realized, it will weaken the US dollar.
Today the Japanese inflation data will be released in April indicated decreases.
According to the analyst for today’s trading, the Nikkei index has the potential to weaken the yen’s rise is limited sengan sentiment.
Technically,
Resistance: 16900 16990 17120 High / Low: 16965/16725
Support: 16750 16690 16650 Closed Price: 16835
Comment: For intraday trade today suggest Buy at the level of 16 770; stop and reversal if break below 16720; level targets at the level of 17050 and reversal targets 16600.
Sterling Pressured By Weak UK Business Investment
The pound against the US dollar in the last difficulty level with a 1:47 confirmed the UK economy grew 0.4% in the first quarter and at the same time business investment is still declining.
Both the data fueled speculation the EU referendum next month have limited the growth of the UK.
0.4% expansion of the UK economy in the first quarter is the slowest pace of growth in the UK since the third quarter of last year.
According to analysts in today’s trading sterling moved lower back support area around 1.4610 – 1.4520.
Technically,
Resistance: 1.4700 1.4750 1.4790 High / Low: 1.4664 / 1.4661
Support: 1.4610 1.4560 1.4520 Running Price: 1.4661
Comment: For intraday trade today suggest Sell 1.4700; stop loss at the level of 1.4736; the target at the level of 1.4602.
Post US Data Releases Gold Prices
In trading with visible gold price is still down, amid a stronger US dollar higher.
Market participants are now focusing to comment the head of Federal Reserve Chairman Janet Yellen for more clues on the timing of US interest rate hikes. Yellen is scheduled to give a speech at the University of Harvard on Friday.
Jobless claims in the US declined.
The Labor Department said that US jobless claims period ending May 20 have experienced a decline, the seasonally adjusted 268K from 278K in the previous week.
Survey of economists memperkirkan that the number of US jobless claims are expected to fall, which is a seasonally adjusted 275k at the end of the period of May 20th.
According to analysts the price of gold in today’s trading will experience a movement towards positi strengthened in the area of resistance around 1222.20 – 1228.40.
Technically,
Resistance: 1222.20 1226.60 1228.40 High / Low: 1220.20 / 1219.50
Support: 1218.70 1216.00 1214.40 Running Price: 1220.20
Comment: For intraday trade today suggest Buy 1217.50; stop loss at the level of 1215.00; the target at the level of 1227.50.
