Investors
should buckle up for a potential showdown as trade is expected to be a major
talking point throughout the summit. With escalating trade tensions seen as a
significant threat to global economic growth, this could be a G7 meeting like
no other.
Leaders
may use this gathering of heavyweights to address President Donald Trump’s
decision to impose steep tariffs on steel and aluminium imports. The session
could produce serious fireworks if the talks descend into arguments and
disagreements on trade.
Markets
will be closely watching to see if G7 leaders will have the ability to persuade
Trump to reverse his steel and aluminium tariffs on three of America's biggest
trading partners. Whatever the outcome of the summit, it most likely will have
a lasting impact on global sentiment.
Dollar declines
on profit-taking
It is
slowly shaping up to be bearish trading week for the Greenback and there is a
strong suspicion that this has nothing to do with a change of sentiment towards
the currency. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
According
to official reports released yesterday, the ISM Non-Manufacturing PMI exceeded
market expectations, by rising to 58.6 in May. With the US economy’s steadily
expanding services sector boosting speculations of higher US interest rates,
one would expect the Dollar to continue extending gains. Price action suggests
that the culprit behind the Dollar’s depreciation could be a bout of
profit-taking by investors. While the Dollar has scope to trade lower in the
short term, the bullish fundamentals are likely to limit the downside.
Taking
a look at the technical picture, the Dollar Index is under pressure on the
daily charts with prices trading marginally below 93.70 at the time of writing.
The downside momentum could drag the Dollar towards 95.00. A breakdown below
this level may invite a further decline towards 93.35.
Commodity
spotlight – Gold
There
is a possibility that safe-haven Gold could be waiting for the G7 summit on
Friday to make its next big move.
Although
global trade fears remain a dominant market theme, the yellow metal clearly
needs a fresh catalyst to accelerate the flight to safety. This much-needed
catalyst could come in the form of Donald Trump if he creates chaos and
uncertainty during the summit. A fresh wave of risk aversion birthed from
heightened trade fears could elevate Gold towards $1300 and beyond.
Focusing
on the technical picture, Gold remains on standby on the weekly charts with
$1300 acting as a psychological level. A solid breakout above $1300 could
encourage an incline higher towards $1324. Alternatively, sustained weakness
below this level may open a path back towards $1280.
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