Pound Sterling Slumped Ahead of the UK Budget Savings Report
The pound sterling weakened by more than 0.5% against the Dollar and the Euro ahead of the post-election budget presentation on Wednesday, even Sterling slumped to its lowest level against the dollar reflects the 4-week rate of economic growth concerns to the fore.
Previous sterling had strengthened supported by positive economic data in recent months with the Conservative party wins a majority on the results of the national elections in May, but the threat of economic shock in other European economies as a result of the Greek debt crisis, the British Minister of Finance, George Osborne promised tougher akah on austerity budget and begin to reduce debt in the near future to improve the outlook.
Osborne also will explain the economic reformation plan with budget savings as well as reducing the tax deduction for workers in the presentation of the first budget in 20 years that the Conservative Party is more flexibility in forming the government.
Technically, today’s trading session on Thursday (09/07), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling mainly expected soon reexamine the minimal resistance at 1.5425 and maximum 1.5500. Meanwhile, if the Pound was unable to break below 1.5377 and then survive another alternative scenario that is Pound chance to test support in 1.5350 area and 1.5300.
Gold Prices Stagnant Tend Down
Gold in Asian trade on Thursday (9/7) morning was observed to be stable as it is triggered from the softening of the US dollar after minutes from the Federal Reserve.
Division of the New York Mercantile Exchange, gold for August delivery Spot tend to settle at $ 1,157.81 per ounce. Minutes of the Fed meeting on 16-17 June shows how the central bank continues to grapple with a plan to raise interest rates later this year, is built from the data of inflation and employment. Additionally minutes underlining the view that the rise in interest rates the Fed is likely to wait until at least September.
While the Asian, Chinese securities regulators prohibited the shareholders with stakes of more than 5 percent of the sale of shares for the next six months, in an attempt to stop the stock prices began to plunge in global financial markets.
Greek newspapers also formally apply for three-year loans to save Greece from bankruptcy and in the Euro zone. South African Association of Mineworkers and Construction Union suddenly stop wage of gold on Wednesday, increasing the threat of strike action and increased costs.
On the other Comex trading, silver futures dropped -0.66% to 15,063, copper futures climbed 1:02% on 2514 levels.
Technically, gold in today’s trading session on Thursday (09/07) 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 1152.10 and re-test the maximum level of 1145.25. However, if the price of gold is able to break and hold above 1157.90, the estimated price of gold could potentially test the Resistance 1159.10 and 1165.25.
Kospi Sink, Lowest Since July 2013
South Korean stock exchange trading on the day Thursday (9/7), opened with the Kospi index is still continuing bearish trend earlier trading, reaching the lowest level since July 2013. These conditions are affected by the condition of China’s stock markets are naturally bad press that made the market to be -liver.
The sentiment seemed to aggravate the Hyundai Motor shares by -1.95%, -1.25% stock KIA Motor, Samsung Electronics shares -0.65%, stock KEPCO Plant Service & Engineering -1.72%, and LG Electronics at -0.45%.
This morning, the Kospi index opened slump observed 19:59 points, or 0.97%, to be 1996.62 points from the previous closing position at 2016.21 points and achieved the highest position previously traded at 2046.33 and the lowest point at 2010.83 points previously.
Likewise, the movement of Kospi index futures this morning, which opened great distress at 2:26 points, or 0.93%, to be 242.68 points from the previous closing position at 244.94 points and reached the highest position previously traded at 248.66 points and the previous low at 244.94 points.
Based on the closing traded before, then Analyst estimates that today’s Kospi index movement will still try to penetrate the first support at 243.30 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at 241.80 points with MA5 BB10 bottom daily.
If the movement of the index managed to turn around the direction of stronger, then is expected to try to penetrate the first resisatance at 245.80 points with MA5 under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 247.10 points with MA5 under BB10 daily.
Technically, the index likely to weaken on the trading session today, Thursday (09/07), 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 243.80 and 242.10. If it fails at 244.35, then the next index is expected to tend to retest the 244.90 resistance level and continued up to the possibility of being in the 245.80 area.
