Although Powell
delivered an encouraging assessment of the economy, he did acknowledge the
multiple headwinds both domestically and externally. A string of disappointing
economic reports from the United States have triggered concerns over growth
prospects, while geopolitical risks and fears of plateauing global growth are
compounding the uncertainty. With a ‘patient’ and ‘flexible’ Fed likely to
leave interest rate unchanged for an extended period of time, the Dollar
remains vulnerable to downside shocks.
The Greenback’s
negative reaction to Powell’s testimony was quite interesting, given that his
comments were old news with no fresh insight provided. I see this reaction as
an early signal for increased Dollar sensitivity to remarks from Fed policy
makers and economic data. All in all, it does feel like Dollar bulls are
running on borrowed time and this continues to be reflected in the Dollar’s
price action.
Taking a look at
the technical picture, the Dollar Index is under increasing pressure on the
daily charts. A solid breakdown and daily close below the 96.00 support level
is seen opening a path towards 95.70 and 95.50, respectively.
Stock markets search for fresh catalyst
Asian markets
edged higher this morning as investors kept a close eye on the US-North Korean
summit, scheduled to commence in Hanoi later today.
Global risk
appetite is likely to receive a solid boost if talks between US President
Donald Trump and North Korean leader Kim Jong Un end on a positive note. It
must be kept in mind that stock markets still remain influenced by US-China
trade developments, global growth concerns and other geopolitical risk factors.
Any fresh news on the trade front or rising geopolitical risks will play a role
in where global stocks close this week.
Currency spotlight – GBPUSD
The British Pound was an unexpected champion across currency markets
yesterday as expectations mounted over a delay in Brexit.
A promise from
UK Prime Minister Theresa May for a vote to delay Brexit if her deal is
rejected came as a breath of fresh air for investors. While the Pound is likely
to extend gains amid the current optimism, the question if for how long? It is
quite frightening how sensitive and explosively volatile the Sterling has
become to Brexit headlines, and this is likely to intensify as the March 29
deadline looms.
Focusing on the
technical perspective, the GBPUSD is heavily bullish on the daily charts. The
daily close above 1.3200 has opened the gates towards 1.3310 in the short to
medium term.
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:
http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
No comments:
Post a Comment