Korea Exchange Closed Negative
At the close of trading on the stock exchange yesterday South Korea, the Kospi closed down -15.93 points or -0.84 percent, to 1,890.67. Weakening the Kospi depressed weakening crude oil prices and a decline in South Korea’s foreign exchange reserves.
Crude oil prices extended losses in Asian trading session on the previous day, eroded by a surge in US crude inventories last week, more than half a billion barrels and Iran plan to increase exports in March. Milder weather forecasts for the last eight weeks the US from November to March warm winter has also reduced demand expectations.
The price of West Texas Intermediate crude oil (WTI), fell 27 cents to $ 29.61, after ending the previous session down $ 1.74, or 5.5 percent. While the price of Brent crude oil for April delivery slipped 25 cents to $ 32.47 a barrel at 0204 GMT, after falling $ 1.52, or 4.4 percent previously.
While the morning was announced South Korea’s foreign exchange reserves fell for the third consecutive month in January largely due to the devaluation of non-dollar assets, such as the British pound, the central bank said. Record the results of foreign exchange reserves of US $ 367.29 billion at the end of last month, down $ 670 million from the previous month, according to the Bank of Korea (BOK).
Technically,
Resistance: 231.75 232.25 232.90 Prev. High / Low: 231.75 / 230.35
Support: 229.50 230.45 231.00 Price: 231.20
Comment: For intraday trade today suggest at level Sell at the level of 232.00 stop and reversal during a break above the 232.25 level targets at the level of 230.30 and target of reversal at the level of 234.80.
Euro Successful Rises Against Dollar
Ending the third day forex trading this week, on Thursday early this morning (4/02) United States currency has continued weakening against many major currencies and the euro managed to become a winner by pressing the strong dollar is very strong, up more than 2 percent.
Dollar weighed down by the statement of New York Fed President William Dudley said the financial conditions with increasingly stringent week after the US central bank that raised interest rates the first time in nearly a decade, and with the existing economic conditions make the Fed consider again to continue its expansion on interest rates the country.
As a result, they become less interested from dollar yesterday due to the falling price of crude oil, after this statement, and also less than impressive economic data overnight making the dollar fell against the euro and yen severe. Dollar against other rivals also weakened as commodity currencies such as the aussie dollar, the kiwi dollar and the Canadian dollar.
The commodity currencies rebounded and rose significantly after the price of crude oil again successfully raised by the market (short covering) after previously dropped again to the position of the lowest prices in 13 years.
Euro and yen which fundamentally have performance that is less favorable than what had been decided by the European Central Bank and the central banks of Japan, where the central bank decided policies that make it difficult for these currencies.
The dollar index, which measures the strength of the US dollar against major currencies ended declined to continue the previous trading which has weakened 4 consecutive days. The charm of the key global currency is fading after the Fed raised interest rates late last year, in contrast to market expectations will become stronger.
Technically,
Resistance: 1.1160 1.1210 1.1260 Prev. High / Low: 1.1116 / 1.1080
Support: 1.1050 1.1000 1.0940 Running Price: 1.1086
Comment: For intraday trade today suggest Sell at the level of 1.1100 stop loss at the level of 1.1135 targets at the level of 1.1005.
Risk Aversion Send Gold to Level 3-Month Peak
Gold hit three-month highs on the day yesterday as a slowdown in the US services sector eroding expectations the Federal Reserve interest rate hike and triggering the weakening US dollar. Volatility in the stock market helped encourage investors to turn to safe-haven assets.
US service sector activity slowed to the lowest level reported two years in January, indicating weak economic growth in the beginning of the first quarter. Furthermore, traders will be looking forward to the latest monthly employment data from the US to look for more clues on the health of the world’s largest economy.
While some analysts said the strengthening of the gold price was also supported by physical buying in China, the world’s largest gold consumer, ahead of the Lunar New Year holiday next week.
Bullion, which usually benefit asset in uncertain times, there have gained more than 7% since the beginning of 2016 amid concerns over the outlook for growth, especially in China, after losing 10% in 2015.
Technically,
Resistance: 1143.50 1145.80 1147.20 High / Low: 1143.50 / 1140.70
Support: 1138.00 1135.40 1131.80 Running Price: 1141.10
Comment: For intraday trade today suggest Sell at the level of 1143.60 stop loss at the level of 1145.90 the target at the level of 1133.60.
