Kospi Continue Strengthening
South Korea’s Kospi index extended gains in early trading today (07.04.2016), motivated Wall Street higher on Wednesday.
Gains on Wall Street previously had trimmed after the release of the minutes of the US Federal Reserve monetary meeting, but managed to bounce back. In the minutes of the March monetary meeting, some members of the Fed show prudence to raise interest rates in April, and others show confidence.
On Wednesday Kospi rose following gains in crude oil prices and China’s services sector activity data which is the major South Korean export market showed an increase.
Spot Kospi (KS200) rose 0.17% to 242.39. While Kospi Futures traded dikisaran 234.20.
Technically,
Resistance: 243.30 243.70 244.50 Prev. High / Low: 243.90 / 242.85
Support: Running 241.50 242.00 242.40 Price: 242.85
Comment: For intraday trade today suggest Sell at 243.70 stop and reversal during a break above the 244.00 level targets at the level of 242.00 and target of reversal at the level of 244.80.
Yen Weakens Against US
Forex news on Thursday (7/4), the US dollar weakened against the yen natural observed since the beginning of this week, after the speech of the Governor of the Bank of Japan this morning.
Ongoing trade in the Asian session, the pair USDJPY observed to weaken 12:22% to trade at 109.55. In US dollar index, which shows the performance of the greenback against a basket of six other major currencies tracked down a 0.01% at the 94.48 level.
US Dollar monitored natural attenuation against the Japanese yen after the release of the speech of the Governor of the Bank of Japan this morning. Bank of Japan Governor Haruhiko Kuroda said that the economic recovery continues at a pace that moderately although there are signs – signs of weakness in the export sector and industrial products.
At a growth rate of inflation in Japan, the central bank will continue to grow despite assess the range of 0%. While currently maintaining stability in Japan’s financial system has become an additional priority for the central bank.
Meanwhile in order to achieve the inflation target of 2.0%, the Bank of Japan today decided to keep QQE (Quantitative and Qualitative Easing) with negative interest rates. Nevertheless, the Bank of Japan will be seeking additional stimulus measures if true – really needed.
While the lack of fundamental reports on Asian trade tends to bring a calmer market movements. But entering the European trade, the jobless claims report and Mario Draghi’s speech could be other effects that led to turmoil movement.
Technically,
Resistance: 109.90 110.30 110.80 High / Low: 109.89 / 109.42
Support: Running 108.10 108.60 109.00 Price: 109.45
Comment: For intraday trade today suggest Buy at 109.00 stop loss at the level of 108.70 and the target at the level of 110.25.
Gold Price Down Affected By Stock Market
Gold prices fell in late trading yesterday, as the recovery in the equity markets prompted some profit-taking after a rally on Tuesday, while the minutes of the latest policy meeting of the US Federal Reserve expressed concern about “the risk of a substantial decline” in the global economy.
Fed policy makers are debating whether a rate hike will be necessary in April, despite a consensus emerged that the risk of a global economic slowdown made a cautious approach, the minutes of the meeting of March 15 to 16 shows.
Spot gold prices fell 0.63 percent to $ 1,222.94 an ounce after falling 1.1 percent. While the price of US gold futures for June delivery was down 0.5 percent at $ 1,223.80 an ounce and last traded down 0.4 percent at $ 1,224.70.
Gold, which is sensitive to interest rate hikes, posted the biggest quarterly gain in almost 30 years in the first three months of 2016, with waning hopes for a US rate hike.
While the US dollar reached a 17-month low against the yen and turned lower against a basket of major currencies.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Shares registered in New York, fell on Tuesday. Reported the first weekly outflow of the year last week.
Among other precious metals, silver futures prices down 0.3 percent at $ 15.07 an ounce, platinum futures prices fell 0.5 percent on $ 947 and palladium futures prices fell 0.17 percent at $ 542.75.
Technically,
Resistance: 1227.10 1229.20 1232.40 High / Low: 1226.60 / 1223.10
Support: 1223.00 1220.40 1216.80 Running Price: 1225.50
Comment: For intraday trade today suggest sell at 1227.00 stop loss at 1229.50 and the target at 1217.20.
