Kospi edged up
The Kospi index on the last trading session observed a slight increase. Strengthening the Kospi index is supported by the value of the won’s rise. Weekly Kospi remained positive with recorded an increase of 0.9%. Won its own currency strengthened against the US dollar, the won versus dollar today rose 0.25% to 1183.61 points.
Won currency gains offsetting the negative sentiment in domestic economic concerns, due to slowing economic growth in the first quarter of South Korea and coupled with a decline in South Korea’s foreign exchange reserves.
In the first quarter, South Korea’s economic growth is still far from the expected. Sluggishness in the sector there is still demand in the country and abroad. In the period from January to March, the country’s gross domestic product Korea expanded 0.5% from the previous quarter. After the release of a report South Korea’s foreign exchange reserves were a result there is a decrease, going again fears for the South Korean economy.
South Korea’s foreign exchange reserves fell slightly from the previous month. This is because the foreign exchange used for cutting the value of non-US dollar assets.
Until the end of May foreign exchange reserves were at $ 307.9 billion, down about $ 1.58 billion from the previous month, reported by the Bank of Korea.
For this week expected Kospi will continue to weaken. Plus the world economic concerns response to higher US interest rates. Namu to note also the movement of the Exchange and crude oil prices could also affect the movement of stock indices.
Technically,
Resistance: 244.62 244.75 244.98 High / Low: 244.71 / 237.79
Support: Closed 244.37 243.93 243.73 Price: 244.55
Comment: For intraday trade today suggest Sell 243.57; stop and reversal during a break at 242.73; the level of the target reversal 243.27.
The yen strengthened against dollars
Japanese Yen opened this morning with a positive market, the USD JPY moves inversely to 1063.73 points, up 0.22%.
The US dollar index, which measures the strength of the dollar to trade at six major currencies, was last quoted at 93.90.
Investors will be waiting for Fed Chairman Janet Yellen’s speech on Monday to sign into the future direction of US interest rates. Market watchers will also be keeping a close eye on developments in the United Kingdom ahead of the referendum on the European Union to come.
Last week, the dollar fell to three-week lows against other major currencies after the US jobs report was much weaker than expected for May cancel expectations for short-term interest rate hike from the Federal Reserve.
The Labor Department reported earlier Friday that the US economy added just 38,000 jobs last month, the smallest increase since September 2010.
Economists had forecast that payrolls will rise 164,000. April number was revised down to 123,000 from the previous estimate of 160,000. The unemployment rate fell to 4.7% from 5% in April as more people out of the workforce.
The weak data sparked doubts over the planned increase in interest rates by the Fed in the coming months and sparked fresh fears over a slowdown in global growth.
Technically,
Resistance: 106.89 107.02 107.36 High / Low: 111.27 / 106.36
Support: Running 106.39 106.58 106.70 Price: 106.59
Comment: For Intraday trade today suggest Buy 107.36; stop loss at 106.89; target at the level of 108.12
Gold climbed in Asian trade
Gold rose in Asia on Monday as the possibility of a rate hike later this month by the Federal Reserve seems to have dimmed on the latest data. Gold for August delivery on the Comex division of the New York Mercantile Exchange rose 0.53% to $ 1,249.50 per troy ounce.
Silver for July delivery, rose 0.43% to $ 16.435 per troy ounce. Also on the Comex, copper futures for July delivery edged up 0.05% to $ 2.120 per pound.
Market players will turn their attention to a highly anticipated speech by Federal Reserve Chairman Janet Yellen on Monday for further instructions at the time of the next US rate hike.
In the last week. Gold prices surged in excess of 2%, this is the biggest one-day gain in a period of 3 months back, This is because the US dollar fell after the release of the nonfarm-payrolls Friday night. A negative result leads to reduced market optimism over the strength of the American economy will raise rates this month.
The American economy added only 38,000 workers were increased in May. The smallest increase since September 2010 and well below expectations for a 164,000 increase. Sectors of the economy creates 123,000 jobs in April, whose figure was revised from a previously estimated at 160,000, reported by the US Department of Labor.
Chances for a rate hike in July dropped to 32% from 58% the previous day, while the chances of September to be around 48%, compared with 66% on Thursday. Gold is sensitive to movements in US interest rates. The increase in US interest rates affect the price of gold could make a quick movement of gold observed.
Technically,
Resistance: 106.89 107.02 107.36 High / Low: 111.27 / 106.36
Support: Running 106.39 106.58 106.70 Price: 106.59
Comment: For Intraday trade today suggest Buy 107.36; stop loss at 106.89; target at the level of 108.12.
