Japan Industrial Production Try Sustains Nikkei
Nikkei up after a rise in Japanese industrial production made investors more confident in the economic recovery of the world’s 3 largest. Japanese monthly industrial production recorded an increase of 2.7% in September; better than expected 2.3% and previous publications which fell 1.9%.
With Japan’s retail sales data yesterday also reported improved then this can give good hope for the country’s economic performance in the third quarter Sakura 2014. Nikkei futures gained 0.88% and is now trading at 15 460.
However, investors appear reluctant to push up the index is too high ahead of the publication of the results of the Federal Reserve’s monetary policy on Thursday morning. Predicted the Fed will end its bond-buying program. However, investors want to look for clues as to whether the Fed will provide the signals will not be in a hurry to raise interest rates by the economic downturn in the euro zone, China, and Japan, as well as the emergence of Ebola cases in the US.
Technically, the index in the trading session today, Wednesday (29/10) is likely to strengthen, test positive trend. In a bullish hammer formation M15 chart gives an opportunity for the index to move upside. However, the volume is likely to increase, as well as an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test the first resistance level of 15600 and 15650. If it fails at 15 550, then the next index is expected to tend to retest the support level of 15510 and continued to be in the area of 15 450 possibilities.
Comments on BoE rate Inhibit Sterling
Sterling cut portion versus the US dollar strengthened following the dovish comments one of the Deputy Governor of the Bank of England, Jon Cunliffe. In a speech at the University of Cambridge, Cunliffe said if the BoE still able to keep interest rates low for a longer time, given weak wage growth and inflation as well as the international outlook is increasingly bleak.
The comment was in line with what has been leveled chief economist Andy Haldane and others Minouche Shafik Deputy Governor. Which indicates the call rate hike of two recent policy-makers will not immediately gain additional support.
“The chance of short-term interest rate hike by the Bank of England has been shrinking rapidly, which indicates that some members of the Monetary Policy Committee will probably change their views,” said Howard Archer, UK economist at IHS Global Insight.
Technically, the trading session today, Wednesday (29/10), the pair euro dollar likely to move in a negative trend.
The weakening of the euro is mainly expected to immediately reexamine the minimum support at 1.6080 and 1.6030 maximum. Meanwhile, if the euro is able to break and hold above 1.6135, then another alternative scenario ie the Euro likely to test resistance in 1.6150 and 1.6200 area.
Gold Down Ahead of FOMC Meeting Upcoming
Gold was observed to decrease in metal commodity trading on Wednesday morning as the market awaits the release of the results of the FOMC monetary policy meeting on Thursday early morning.
In trading on the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded down 0.05% at $ 1,227.90 per troy ounce. Gold futures were likely to find support at $ 1,222.40 with the highest resistens at $ 1,235.20.
Last night ended gold surged at $ 1,229.40 per ounce and widely traders still worried about interest rate hikes from the Fed’s dovish or hawkish containing about stimulus program itself.
Investors expect the US central bank to raise interest rates in some future time in the period in 2015, though the US data still can not determine whether the stimulus programs can be faster or slow down.
Meanwhile, silver futures for December delivery fell 0.01% to $ 17.195 per troy ounce and copper futures for December delivery rose 0.04% to $ 3.092 per pound.
Technically, gold trading session today, Wednesday (29/10) reversal potential, test positive trend, but prone to taking profit. The RSI indicator is likely to re-test resistance bullish channel and into the area, but the Bollinger Bands which began to shrink, thus giving impetus to gold to the downside.
It is estimated that the price of gold immediately prior to test resistance at least in the area of 1233.50 and re-test the maximum level of 1238.00. However, if the price of gold could not break and stays below 1228.90 then estimated the price of gold has the potential to test the 1225.90 and 1220.50 Support.
