With
the pending US jobs report potentially impacting Fed rate hike expectations,
emerging market currencies like the Naira could be affected. A solid US jobs
report for May that fuels speculation of higher US interest rates this year may
spell more pain for EM currencies. While the Naira could find itself pressured
by an appreciating Dollar, losses may be limited by the improving sentiment
towards the Nigerian economy.
Global stocks
shrug off trade war fears
This
has certainly been a rollercoaster trading week for financial markets thanks to
geopolitical uncertainty and renewed trade war fears.
Easing
political tensions in Italy have rekindled risk appetite, ultimately resulting
in global equity markets venturing higher. However, global sentiment is likely
to remain cautious after the United States announced it would impose steel and
aluminium tariffs on Canada, Mexico and the EU. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
With Canada and Mexico immediately retaliating against the US tariffs and the
EU threatening a similar response, fears could intensify over a global trade
war. While stock markets could nudge higher on relief over Italy narrowly
avoiding snap elections, gains are likely to be capped by renewed trade war
concerns.
Euro strengthens
as Italy fears ease
The
Euro was thrown a lifeline this week after a last-minute coalition agreement
between Italy’s two anti-establishment parties eased fears of a snap election.
While
the Euro has scope to extend gains as Italian political tensions ease, the
question is - for how long? With uncertainty likely to mount following the
Spanish Parliament forcing Mariano Rajoy out of office in a vote of no
confidence, the Euro remains exposed to downside risks. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Taking a look at the technical picture, the EURUSD remains bearish on the daily
charts despite the rebound witnessed this week. A technical bounce could be in
play, with the next key levels of interest at 1.1750 and 1.1820.
Dollar weakens
ahead of NFP report
Today’s
main risk event for the Dollar will be the monthly US jobs report for May,
which could offer fresh insight into the health of the US labour market.
Markets
expect the US economy to have added 189k jobs in May, up from 164k in April,
while the unemployment rate is predicted to remain steady at 3.9%. Much
attention will be directed towards wage growth figures which could shape US
rate hike expectations beyond June. Any signs of accelerating wage growth may
boost speculation over the Federal Reserve adopting a more aggressive approach
towards monetary policy normalization this year. With the Dollar highly
sensitive to monetary policy speculation, expectations over the Fed raising
rates faster than expected could provide the currency a boost.
Taking
a look at the technical picture, the Dollar Index remains bullish on the daily
charts. A solid US jobs report could inspire bulls with enough inspiration to
challenge the 95.00 level. Alternatively, sustained weakness below 94.00 could
invite a decline towards 93.40.
Commodity spotlight – Gold
Gold
has been pushed and pulled by a variety of fundamental drivers this week with
prices trading marginally below $1300 as of writing.
While
geopolitical uncertainty and trade war fears continue to boost appetite for the
precious metal, gains have been limited by expectations of higher US interest
rates. Price action suggests that the yellow metal is searching for a fresh
directional catalyst, and this could come in the form of the US jobs report
that is scheduled for release today. Investors will continue to closely observe
how prices react around the psychological $1300 level.
From a
technical standpoint, repeated weakness below $1300 could encourage a decline
towards $1280. Alternatively, a solid breakout above $1300 may invite an
incline higher towards $1324.
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:
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