Sterling Crop Strengthening
The pound sterling strengthened against the dollar cut ahead of the opening of the US trading session today (13/7). The British currency last week posted a weakening in three consecutive weeks.
Bank of England credit conditions survey in a report released today said mortgage demand in the second quarter rose significantly, after declining in the previous three quarters, and is expected to rebound in the third quarter of this year. The increase in loan demand also occurred in large and small companies rose, and was expected to continue in the third quarter.
While the Greek bailout deal makes investors now shift the focus back to the potential rise in US interest rates, which boost the performance of the dollar. President of the European Council, Donald Tusk, said euro zone leaders reached agreement will provide bailout funds to Greece through the European Stability Mechanism (ESM)
GBPUSD traded at 1.5527 at 20:17 GMT, after briefly hitting a daily high of 1.5588, and 1.5492 lows
GBPUSD Stronger, Greece Crisis Highlights Market
The movement in the currency market on Monday, the pound strengthened against the US dollar observed when the attention of the market continues to focus on the Greek debt crisis.
The course of trading in the European session, GBPUSD rose 0:18% in the level of 1.5528 where the pair is seen moving hit a daily low of 1.5494 to a session and 1.5590 level to the highest sessions daily.
British currency still looks the support for strengthened against the US dollar earlier this week, when speculation that it would be agreement between the Greek bailout with international creditors.
Fell on a Monday, euro zone leaders say that they will give Greece another bailout for the government of Prime Minister Alexis Tsipras successfully implement rules that encourage savings in the coming days.
“EuroSummit has unanimously reached an agreement”, said Donald Tusk, who led talks with European leaders, said in a tweet. “All ready to create the European Stability Mechanism or ESM program for Greece with a serious reform and financial support for sure.”
Rescue tentative agreement which was agreed after 22 hours of fierce negotiations between the leaders of a common currency and a member of the euro-zone finance ministers is likely to require a left-wing government to surrender completely to the demands of creditors.
In regards of the case of the Greek debt crisis, the relationship suddenly opposing France and Germany when Chancellor Angela Merkel and President Francois Hollande differ very much in how to maintain Greece remains in the euro zone. Germany had dismissed a Greek exit from this zone (Grexit), otherwise France desperately wants Greece remains in the euro zone.
“There will not be any agreement,” Merkel said referring to the distrust of leftist governments while reminding the Greek debt negotiation is complicated. If Merkel does not rule out “Grexit” and its contrary to Hollande who reject this scenario.
“There’s Greece in the eurozone or Greece is no longer in the eurozone, but the point I do not want that,” said Hollande with a vow to do anything to maintain Greece in the euro zone.
Technically, the trading session today, Tuesday (14/07), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamines the minimum Support at 1.5425 and maximum 1.5350. Meanwhile, if the Pound able to break and hold above 1.5487, then the other alternative scenario that is likely to test resistance Pound in 1.5510 and 1.5560 area.
Gold Luster Still Dims
Gold in Asian trade on Tuesday (14/7) morning observed decline. With investors who want to see the Greek Parliament after the agreement of a new bailout.
Comex division of the New York Mercantile Exchange, gold for August delivery was down -0.10% at $ 1,154.40 a troy ounce. Last night, gold futures fell amid strong dollar. Greece and international creditors agree on the bailout after negotiations.
After an emergency summit in Brussels, Greece agreed to a range of concessions to the austerity measures that could pave the way for three years, bailoit worth € 86 billion through the European stability mechanism (ESM). Under the agreement the Greek parliament until the deadline until Wednesday ratified, the agreement covers the increase in sales tax, pension reform and labor market reform.
Austerity actions are considered more stringent than those listed in the proposal by euro zone leaders late last month, before finally rejected by Greece in a historic referendum on July 5.
Turning to China, exports for June rose to 2.8% but imports fell by 6.1%, much higher than the expected 16% decline in the month. This resulted in a lower surplus of $ 46.5 billion, well below analysts’ estimates $ 55.3 billion. As is known, China is the world’s largest producer and second largest consumer of the precious metal.
For other trade Comex, silver berjanga silver for September delivery fell 0.14% to $ 15,435 per ounce. Copper for September delivery was flat at $ 2,543 per pound.
Technically, gold in today’s trading session Tuesday (14/07) 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.
It is estimated that the gold price immediately prior to test support in the area of at least 1149.25 and re-test the maximum level of 1144.10. However, if the price of gold is able to break and hold above 1154.70, the estimated price of gold could potentially test the Resistance 1157.80 and 1162.50.
Kospi Beware Of Profit Taking
South Korea stock trading on Tuesday’s morning (14/7), opened with the Kospi are still continuing rally earlier trading, but need to be aware of the existence of profit-taking that would impose movement of the stock market, where the momentary market opened, the Kospi turned depressed.
But this morning was reinforced by the stock performance of 0.85% Hyundai Motor, Kia Motors shares 0.60%, and LG Electronics 0.88%, but shares of Samsung Electronics turned depressed -0.87%, and the stock KEPCO Plant Service & Enginering down -3.45%.
This morning, the Kospi is still opened higher by 4.81 points or 0:23%, by becoming 2066.33 points from the previous closing position at 2061.52 points and achieved the highest position previously traded at 2063.28 and the lowest point at 2030.21 points earlier.
Similar to the movement of Kospi index futures this morning, which opened positive at 0:34 or 0:13% points, to be 250.18 points from the previous closing position traded at 249.84 points, and reached the highest position previously traded at 251.12 points and the previous low at 246.64 points.
Based on the results of the closing of trading on the stock exchange before, then Analyst estimates that today’s Kospi index movement will try to penetrate the first resistance at 250.25 points with MA5 on BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 251.45 points with MA5 on BB10 H4.
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 248.10 points by the middle MA5 BB10 H4, if the movement of the index broke through the first support is expected to try to penetrate the second support at 247.10 points with MA5 under BB10 H4.
Technically, the index likely to weaken on the trading session today, Tuesday (14/07), 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 of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first support level 247.70 and 247.00. If it fails at 248.50, then the next index is expected to tend to retest the 248.80 resistance level and continued up to the possibility of being in the 249.50 area.
