Oil Prices Strengthening Nikkei Stock Index
Japanese stocks rose on Wednesday, extending the biggest gain in seven weeks, as commodity producers led gains in the stock indexes rally in oil prices and the yen are still moving sluggish for two days against the dollar.
The Nikkei index rose by 120 points or 0.71% at 17000 at 8:05 pm. Oil prices rose for the first time in five days on Tuesday due to a strike in Kuwait slashed oil output from OPEC member’s fourth largest, while the weak housing data from the US make the dollar weakened, increasing investor demand for commodities.
Analysts say that the main driving force that makes stock index rose, the price of oil. However, it is difficult to risky assets to gain positive sentiment completely. The results of earnings reports in the US vary, while the US housing data were not very nice.
Technically,
Resistance: 17030 17100 17210 High / Low: 17100/16960
Support: 16900 16810 16750 Running Price: 16 970
Comment: For intraday trade today suggest Buy at 16900 stop and reversal if break below 16850 and targets at the level of 17 150 and 16700 of reversal.
US Dollar Close Lower Against Euro
The US dollar weakened against most other major currencies, triggered by weaker economic data from the projection.
Housing starts index privately owned in the US in March reached 1.089 million units at a seasonally adjusted annual rate, on the release of the Commerce Department last night.
The latest forecast is below the market forecast 1.167 million units and 8.8 percent below forecast in February. Elsewhere, the Federal Reserve reported on Friday that US industrial production fell 0.6 percent in March for the second month in a row, below the market consensus for a 0.1 percent decline.
The dollar index, which measures the greenback against six major currencies, fell 0.56 percent to 93.963 in late trading. EURUSD rose to 1.1380 levels.
Technically,
Resistance: 1.1400 1.1440 1.1485 High / Low: 1.1362 / 1.1353
Support: 1.1310 1.1250 1.1200 Running Price: 1.1361
Comment: For intraday trade today suggest Sell at 1.1400 stop loss at the level of 1.1436 the target at the level of 1.1302.
Gold Prices Rise With Weakening US Dollar
Gold prices rose in late trading yesterday helped by the weakening US dollar after the release of economic data below expectations.
US housing starts fell more than expected in March and permits for future home construction reached its lowest point of the year, showed some slowdown in the housing market in line with signs of a sharp slowdown in economic growth in the first quarter.
The US dollar extended losses after US data, fell 0.6 percent against a basket of major currencies. The US dollar has fallen to its lowest level since October last year in recent weeks.
Spot gold prices closed up 1.45 percent at $ 1,250.12 per ounce. While US gold futures prices touched a one-week high at $ 1,256.80 per ounce and ended up 1.41 percent at $ 1,252.40.
The weakening US dollar also trigger an increase in other precious metals. Platinum futures prices rose 4.1 percent to its highest level since October 23 at $ 1,015.70. Silver futures prices rose 5.2 percent to $ 17.07, the highest since June 2015, before stabilizing with a gain of 4.32 percent at $ 16.95. While the Palladium futures prices rose 2.57 percent to $ 582.60 per ounce.
Gold traders are also watching comments from Federal Reserve officials to gauge the outlook for US monetary policy.
The Fed raised rates from near zero modest in December, the first policy tightening in nearly a decade. While the futures market implies no further hikes until December, the Fed outlook suggests there may be two more hikes by year end.
New York Fed President William Dudley said on Monday that the US economy is “mostly favorable” but the Fed remains cautious on interest rates.
Boston Fed President Eric Rosengren, however, said the Fed is set to raise rates faster than investors currently think.
China as the top consumer of gold launch yuan-denominated benchmark gold on Tuesday as the country taking ambitious steps to exert more control over the price of the metal and increase its influence in the global gold market.
Tonight will be released March Existing Home Sales data is the US, which is indicated to increase. If this is realized, it will potentially strengthen the US dollar.
Technically,
Resistance: 1255.10 1257.40 1259.20 High / Low: 1253.90 / 1249.10
Support: 1250.00 1246.40 1244.80 Running Price: 1253.80
Comment: For intraday trade today suggest Sell at 1255.00 stop loss at the level of 1257.50 the target at the level of 1245.00.
