Kospi Optimistic With World Economy
Kospi rose after the central bank cut interest rates of China and the ECB’s Draghi’s dovish comments made investors more optimistic about the outlook for the world economy. China’s central bank cut interest rates on loans and deposits respectively to 5.6% and 2.75% on Friday.
Reuters resource person even reported that the PBOC is ready to loosen monetary policy further as the central bank seeks to prevent a slowdown in the Chinese economy.
ECB’s Draghi’s dovish comments at the weekend also make investors believe that the ECB is ready to ease monetary policy further if needed. “We will do what needs to be done to raise inflation and inflation expectations as quickly as possible,” said the ECB’s Draghi.
The ECB also has announced the commencement of the asset purchase program-backed-securities (ABS) as one of the ECB’s policy to prevent the euro zone fell into recession and deflation. China and the euro zone is the share of primary exports to South Korea to signal improvement in economic conditions in these areas can have a positive impact for South Korean exporters. Kospi futures rose 1.30% and is now trading at 253.75.
Technically, the index on the trading session today, Monday (24/11) likely to weaken, 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 tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 251.50 and 250.00. If it fails at 253.30, then the next index is expected to tend to retest the resistance level of 254.60 and continued until the possibilities are in the 255.90 area.
Thin down, Pound Still Under Pressure
Sterling on last week’s trading in general observed trend very thin weakened against the US dollar. Trading currency pair GBP / USD is once opened in the range of 1.5663 in early trading week has dropped about -10 pips or about -0.06% and closed at around 1.5653.
Analysts suggested that the weakening of Sterling currency at this week related to the report of the Office for National Statistics on the consumer sector still has not shown an increase.
Indicators Core CPI y / y reported still stands at 1.5%, the same as the previous period. The actual data is lower than economists estimated that expects to rise to 1.6% figure.
In trading this week (November 24 to 29), the normal range of GBP / USD weekly forecast to have the support level at 1.5582 and then at 1.5511. While the resistance level at 1.5729 and then at 1.5806.
The movement of the currency pair is expected to be affected by a number of economic data releases that include: Second Estimate GDP q / q and Prelim Business Investment q / q.
Technically, today’s trading session on Monday (24/11), pound sterling-dollar pair likely to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.5700 and 1.5750 maximum. Meanwhile, if the Pound was unable to break and stays below 1.5655 then another alternative scenario that Pound chance to test support in 1.5620 and 1.5570 area.
Gold Ends Soaring Post Stimulus Europe and China
Gold rose by close of trade monitored weekly after dovish comments from ECB President Mario Draghi and stimulus in China.
In the metal industry and other mulian increased as stimulus in China and the market makers are betting on rising demand for metal commodities from one of the largest economies in the world.
Gold for December delivery settled up $ 12.10, or 0.6%, at $ 1,197.70 per ounce. Gold futures were likely to find support at $ 1,197.20 with the highest resistance level at $ 1,198.30.
Meanwhile, silver for delivery in December rose 26 cents, or 1.6% to settle at $ 16.40 per ounce level. High grade copper for delivery in December rose by 1% or 0.3% to settle at the level of $ 3.03 per pound, platinum for delivery in January closed up $ 21.70, or 1.8%, to settle at $ 1,227.30 an ounce, while December palladium rose $ 27.75, or 3.6% to settle at $ 794.90 an ounce level.
Technically, gold trading session today, Monday (24/11) the potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1205.50 and re-test the maximum level of 1210.50. However, if the price of gold was unable to break and stays below 1200.00 then estimated the price of gold could potentially test the 1193.50 and 1190.60 Support.
