Thursday, 26 April 2018


Emerging market currencies were exposed to downside risks this week after the U.S 10-year Treasury bond yield punched above 3% and boosted the Dollar. The Naira slightly felt the heat, weakening against the Dollar at the investor’s window and parallel market at N363. With the Dollar likely to remain supported by speculation of higher U.S interest rates, EM currencies, including the Naira, could be exposed to further losses.

Euro softens ahead of ECB decision
There is a growing air of anticipation across financial markets ahead of the European Central Bank rate decision and press conference later in the day.

Although the ECB is broadly expected to keep monetary policy unchanged in April, the main focus and potential action will probably revolve around Draghi’s post-meeting press conference. While Mario Draghi is likely to reiterate the message he delivered during March’s policy meeting, when the ECB dropped its easing bias, this could be presented with dovish touch. With Eurozone economic data disappointing in recent months, inflation still below the golden 2% target and lingering trade tensions weighing on sentiment, doves could steal the show today.

A key question on the mind of many investors is whether the soft economic data during Q1 will result in the ECB delaying the QE exit decision. With speculation rising over the ECB pushing back the taper timeline, it will be interesting to hear Mario Draghi’s thoughts on this topic during his press conference. The Euro remains at risk of extending losses against the Dollar if Draghi strikes a cautious tone.

This is certainly shaping up to be a bearish trading week for the Euro, which has tumbled to levels not seen since the 1 March – below 1.2160. Focusing on the technical picture, the EURUSD is at risk of tumbling lower, if bears are able to maintain control below the 1.2200 level. Previous support around 1.2200 could transform into a dynamic resistance, which invites a decline towards 1.2150 and 1.2090.

Commodity spotlight – WTI Oil
WTI Crude appreciated on Thursday morning, as market expectations over the United States re-imposing sanctions against Iran and a drop in Venezuela’s oil production fuelled fears of supply shortages.

It is becoming increasingly clear that oil bulls remain heavily reliant on geopolitical tensions to sustain the current rally. While further upside could be on the cards in the near term amid OPEC optimism, gains are likely to be capped down the road by soaring production from U.S Shale. Taking a look at the technical picture, WTI Crude continues to fulfil the prerequisites of a bullish trend as there have been consistently higher highs and higher lows. WTI has the potential to challenge $70 if prices are able to keep above $67.50. Alternatively, if bulls become exhausted and fail to defend $67.50, the next level of interest will be at $66.00.

Hmmm!!! Folks, have you ever imagined how the financial status of your firm will be when more than 20,000 CEOs and other key decision makers of blue-chip corporations pay for your products and services or even give you very juicy deals. The link below will tell you more:

Have you heard this? Many Nigerian exporters have been defrauded of huge amount of money in the process of exporting commodities to foreign countries. Do you know why? They were not trained on export operations, management, documentations and the best methods of payment in export trade. This is terrible!!! Nigerians cannot continue to lose money to foreigners in the course of export business. Exporters, why don’t you get a practical manual that teaches the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers. It teaches export operations, export management, export documentations and methods of payment in export trade? It is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below:

No comments:

Post a Comment