While
an incredible rally in technology shares has supported global stocks, there is
a suspicion that investor complacency towards the renewed trade tensions
continues to play a key role. Although stock markets have scope to venture
higher amid the apparent appetite for risk, the question is - for how long?
It
must be kept in mind that President Trump's trade wars remain a major threat to
financial markets and this is likely to continue weighing on sentiment. With
Trump’s unpredictability fostering a sense of uncertainty over trade
developments, stock markets remain vulnerable to losses.
Sterling boosted
by positive services data
The
British Pound appreciated against the Dollar after UK services accelerated in
May, easing some concerns over the health of the UK economy. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
The
Purchasing Manager’s Index for UK services exceeded expectations in May by
rising to 54.0 from April’s 52.8. While the recovery in services is encouraging
and may stimulate expectations of a BoE rate hike later this year,
Brexit-related uncertainties continue to weigh on sentiment.
Taking
a look at the technical picture, the GBPUSD remains bearish on the daily charts
despite the recent rebound. The upside momentum could send prices towards
1.3450 before the bearish trend resumes. Alternatively, a breakdown below
1.3300 could encourage a decline towards 1.3210.
Dollar waits for
ISM Non-Manufacturing PMI
The
Dollar held steady during Tuesday’s trading session as investors awaited the US
ISM Non-Manufacturing PMI figures for May which could provide fresh insight
into the health of the US economy. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Markets
expect the ISM Non-Manufacturing PMI index to rise 58.00 in May, which could
boost optimism over the US economy being on a track for a solid second quarter.
The Dollar is likely to receive a boost if the data exceeds market
expectations.
Focusing
on the technical picture, the Dollar Index remains bullish on the daily charts.
Prices have scope to attack 95.00 as long as bulls can defend 94.00.
Alternatively, sustained weakness below 94.00 could invite a decline towards
93.40.
Rand tumbles on
disappointing GDP data
Buying
sentiment towards the South African Rand sharply deteriorated following reports
of the South African economy suffering its worst quarterly growth in almost a
decade.
The
economy shocked markets by shrinking 2.2% on an annualized basis during the
first quarter of 2018. This was a complete turnaround to the positive end of
2017 where final quarter growth rose 3.1%. With the GDP report heavily
disappointing, sentiment towards the South African economy is likely to receive
a heavy blow with the Rand on the receiving end. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Could
the abysmal GDP reading be attributed to the weakening of the “Ramaphosa
effect” that was noticed when Cyril Ramaphosa became the President of South
Africa? This is the question everyone is asking.
Focusing
on foreign exchange, the USDZAR has jumped towards 12.700 as of writing and has
scope to challenge 12.750 if the Rand continues to depreciate.
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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