Signs
of easing inflationary pressures in Nigeria present a solid argument for an
interest rate cut. However, a rate cut could accelerate capital outflows,
especially when considering how the Federal Reserve is expected to raise
interest rates twice this year. If economic growth in Nigeria builds momentum,
inflation cools to single digits and oil prices remain at elevated levels, the
central bank could cut interest rates the final quarter of 2018.
Trump-Juncker
meeting in focus
Asian
stocks have commenced on a positive note this morning, as strong US corporate
earnings and optimism over China boosting fiscal support for its economy
rekindled risk appetite.
European
markets could benefit from the risk-on sentiment; however, gains may be limited
as investors adopt a guarded approach ahead of a meeting between the EC
President Jean-Claude Juncker and US President Donald Trump. With escalating
trade tensions between the European Union and the United States still a key
theme that continues to weigh on global sentiment, the outcome of today’s
meeting could leave a lasting impact on the markets. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
If the
talks prove unsuccessful and trade tensions end up escalating further, risk
sentiment is likely to be negatively impacted.
Market players should be prepared to expect the unexpected from the
talks, especially when considering how highly unpredictable the Trump
administration can be.
Turkish lira
crumbles after central bank holds rates
The
Turkish Lira depreciated heavily against the Dollar yesterday after the
nation’s central bank defied market expectations by leaving interest rates
unchanged at 17.75%, despite inflation soaring.
http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
This
move immediately raised questions over the central bank’s independence, a month
after President Recep Tayyip Erdogan’s re-election under an amended
constitution that enabled him to follow through on his promise to take more
direct control over monetary policy.
Outside
of Turkey, global trade tensions, a broadly stronger Dollar and expectations of
higher US interest rates have exposed to the Lira to downside risks. With a
combination of external and domestic factors eroding buying sentiment towards
the Lira, the local currency remains at risk of depreciating towards 5.00 and
beyond against the Dollar.
Currency spotlight
– EURUSD
The
EURUSD was on standby on Wednesday morning, as investors positioned ahead of
the anticipated meeting between US President Trump and European Commission
President Jean-Claude Juncker. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Heightened
concerns over a trade war with the United States have shaved some attraction
away from the Euro and this can be reflected in the bearish price action. There
could be some action on the EURUSD today depending on the outcome of the
meeting. Focusing on the technical picture, the EURUSD remains in a wide range
on the daily charts. Sustained weakness below 1.1700 could inspire a decline
towards 1.1640 and 1.1600, respectively. In regards to the longer-term outlook,
the divergence in monetary policy between the European Central Bank and the
Federal Reserve could ensure the currency pair remains depressed for prolonged
periods.
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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