Market
volatility could be slightly muted today as anticipation mounts over the
various scenarios that may play out when Donald
Trump meets his G7 partners in Quebec. With the Director of the National
Economic Council, Larry Kudlow, stating on Wednesday that Trump is sticking
with a hardline stance on trade, expectations for a resolution this week remain
low.
However,
when dealing with the ever-unpredictable Trump administration, investors should
always be prepared to expect the unexpected. Any signs of the United States
potentially rolling back steel and aluminium tariffs on Canada and the European
Union could ease trade war fears.
Euro higher ahead
of GDP report
Buying
sentiment towards the Euro received a solid boost after comments from ECB chief
economist, Peter Praet, elevated
expectations that the European Central Bank will be winding down its stimulus
programme.
According
to Praet, robust economic growth has boosted confidence over inflation reaching
the 2% target. With such hawkish comments fuelling speculation over the ECB
revealing more about its bond-buying programme as soon as next week, the Euro
could venture higher. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
While the improving economic conditions in Europe could continue supporting the
Euro, political risk may threaten upside gains.
Today’s
main event risk in Europe will be the third estimate of the first quarter GDP,
which is expected to confirm that economic activity cooled from 2.8% to 2.5%
YoY. Although such a result may pressure the Euro, the currency remains
supported by expectations of QE potentially ending this year.
Taking
a look at the technical picture, the EURUSD has marched to a fresh two-week
high above 1.1810 as of writing. A solid break above 1.1820 could encourage an
incline higher towards 1.1930. Alternatively, a failure for prices to conquer
the 1.1820 level could result in a decline back towards 1.1750.
Commodity – WTI
Oil
Oil
markets are likely to remain in limbo ahead of the upcoming OPEC meeting on 22
June. The depreciation of Oil witnessed in recent weeks continues to highlight
how geopolitical risk factors are unable to sustain the bull rally. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Market players are more concerned with the overall supply concerns and this is
reflected in the depressed price action. With expectations heightened over OPEC
and its allies easing production curbs to counteract falling output from
Venezuela and Iran, WTI could be poised for further punishment. It must be kept
in mind that rising output from Russia and OPEC combined with surging US Shale
production could revive the oversupply concerns – ultimately haunting investor
attraction towards Oil.
Focusing
on the technical picture, WTI Oil is under pressure on the daily charts.
Sustained weakness below $66 could encourage a decline towards $64.30 and
$64.00, respectively.
Currency
spotlight – GBPUSD
This
has been a positive trading week for the GBPUSD, mostly thanks to a weakening
US Dollar. With the bearish fundamentals behind the Pound’s weakness still
intact, it will be interesting to see how much further the GBPUSD rebounds
before bears attack again.
Taking
a look at the technical picture, the GBPUSD is in the process of a technical
bounce on the daily charts with prices trading around 1.3450 as of writing. A
breakout above 1.3450 could encourage an incline higher towards 1.3530.
Alternatively, a failure for bulls to conquer the 1.3450 level could result in
prices sinking back towards 1.3380 and 1.3300, respectively.
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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:
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: http://www.tectono-business.com/2015/07/tectono-business-review-in-conjunction_21.html
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