Gold Hit By US Economic Outlook
Gold continued weaken in the fourth session despite the US dollar ended trading tends to be flat. Gold ended lower in four straight sessions. Bureau of Economic Analysis of the US Commerce Department revised up its estimate of GDP growth in the first quarter, from its initial projection of negative 0.7% to negative 0.2% annual growth. Better economic outlook could boost expectations for higher interest rates and removing gold charm that does not give flowers.
Proposed that latest Greece rejected the creditors and it should be able to give impetus to the strengthening of gold as a safe haven asset. However, gold remains weak with investors expecting the opportunities an agreement at the conference EU leaders on Thursday.
The gold price ended at the level of $ 1175.21 per troy ounce, with daily highs $ 1,180.19 and $ 1,170.52 daily lows.
Technically, gold on the trading session today, Thursday (25/06) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands began to shrink, thus giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1181.25 and re-test the maximum level of 1186.50. But if the gold price could not break and survive below 1176.60 then predicted gold prices could potentially test the Support 1173.10 and 1168.00.
End Drama Greece, Pound Corrected on Dollar
The drama of Greece appears to be ending and re-focused investors’ attention to the issues of economic performance in relative terms, which refer to strengthening that occurred in Pounds Sterling.
In cross trading, Sterling rose sharply against the euro, reaching its strongest position in this month. Throughout nearly nine months has strengthened and a restrained on Monday after Greek Prime Minister Alexis Tsipras getting 48 hours leeway to reach an agreement with the lenders of Greece.
The strengthening of the pound sterling would now be more driven by the performance of the domestic economy where the UK’s economic recovery showed a good momentum of one of them by the increase in the wage rate. These conditions standardize speculation that the Bank of England will be the other major central banks will follow the lead of the US Federal Reserve in raising interest rates. The opposite is the European Central Bank remains committed to carry out the purchase of bonds back at least until September 2016.
It could be said that the strong British economy today, state of emergency interest rate is no longer appropriate, even though the inflation rate is still quite high. Pound sterling rose by 0.9% to 71.05 per euro figure in the trade GBPEUR had even reached to the position 70,80. In trade GBPUSD declined by 0.6% to a level of $ 1.5727, even touching $ 1.5682. Compared with the Euro, Pound was higher by 5.4 percentage during the three months, the best performance. This condition is affected by the image of the Greek problem and signalled an improving economy gained momentum together.
With solid domestic economic conditions, it is estimated that in the next five meetings to be held by the BOE MPC of one of them is by raising interest rates. UK inflation is expected to rebound, as targeted by the BOE’s 2 percentage as the impact of falling oil prices and the strengthening of the pound sterling itself. A week earlier, the BOE has launched the results of their meeting last June in which they assert will do the reduction of restrictions related to the British economy after taking into account economic data that wage increases running very fast in the last four years.
Throughout the year, the pound sterling strengthened based on speculation that the BOE will be the second major central banks will follow the US central bank’s policy in terms of raising interest rates and tightening monetary policy back. The British currency is instantly rose 6.3 percentage for three months on the Euro, the Australian dollar even against you also applies thereby. The situation is similar to the condition in which the US dollar was treading middle lane interest rate hikes in the near future. Amid the rate of this increase, the position of buy and hold would be a more appropriate choice, although there are those who claim at least until May, the UK interest rates would be raised still not visible.
It may be that in the near future this wills GBPUSD rose momentarily to $ 1.62 to the 1.63 area. Amid this potential increase, referring to the situation of trade since last May, the pound sterling visible position which is in the overbought area so experienced selling pressure. Can occur and the potential reduction in direct GBPUSD at $ 1:56 to 1:55, the area where the average trade GBPUSD in the past 50 days.
Technically, the trading session today, Thursday (25/06), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon re-examine the minimum Support at 1.5630 and maximum 1.5580. Meanwhile, if the Pound able to break and hold above 1.5691, then the other alternative scenario that is likely to test resistance Pound in 1.5725 and 1.5775 area.
Nikkei Morning Hit Profit Taking
Japan Tokyo stocks in early trading Thursday morning (25/6), was observed with the Nikkei index’s gains reversed the previous trading by profit taking after the market hit a record high.
In addition the action also drove by negative sentiment from the data of foreign investment funds in the country the third week period in June, which is shown by the indicator Foreign Investment Bond and Stock Investment by Foreigners Japan. Overall the results showed an increase from previous releases, but the results are still in negative territory. Foreign Investment Bond Japan became – ¥ 892.8B from the previous release – ¥ 1844.8B while the Stock Investment by Foreigners it becomes – ¥ 253.9B from the previous releases on – ¥ 413.2B.
Stock affected the profit taking as the Bridgestone shares fell by 0:44%, Mitsubishi Materials -0.60%, Sumitomo Heavy Industries -0.93%, -2.05% stock Daikin Industries, Hitachi shares -0.91%, -1.12% Mitsubishi Electric shares , Kawasaki Heavy Industries shares -0.82%, -1.14% shares of Nissan Motor, Mazda Motor -1.37%, and shares of Mitsubishi Motors at -0.75%.
The movement of Nikkei index opened this morning slumped 90.34 points, or 0:43% by becoming 20777.69 points and reached the highest position previously traded at 20952.71 and the lowest point at 20838.22 points previously.
But unlike the movement of Nikkei index futures this morning were successfully opened higher by 40 points or 0:20% to become 20 785 points from the previous closing position at 20 745 points and reached the highest position previously traded at 20,950 points and the previous low at 20 820 points.
Based on the closing traded previously, the analyst estimated that the movement of the Nikkei index today will try to penetrate the first support at 20,750 points by the middle MA5 BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 20 610 points by the middle MA5 BB10 daily.
If the movement of the index managed to turn around the direction of stronger, then is expected to try to penetrate the first resistance at 20 875 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 20 990 points with MA5 on BB10 daily.
Technically, the index on the trading session today, Thursday (25/06) 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, signalling upside.
It is estimated, the index test the first resistance level of 20 890 and 20 835 20950. If it fails in, then the next index is expected to tend to retest the support level of 20800 and continued until the possibilities are in the area of 20 750.
