Although
North Korea has offered an olive branch to the US, it is still going to be
interesting to monitor how investors react to this development. If they adopt a
cautious stance over the upcoming trading session, there is likely going to be
less buying demand for emerging market currencies like the Naira.
Alternatively, signs of de-escalating tensions between both sides could
rekindle risk appetite consequently supporting EM currencies.
Sentiment mixed
as North Korea offers olive branch
It’s
remarkable that just hours after President Donald Trump suddenly axed his
highly anticipated June summit with Kim
Jong-Un in Singapore, North Korea unexpectedly offered an olive branch.
North
Korea has stated that they remain open-minded in giving “time and opportunity”
to the United States and are willing to meet Trump “at any time in any way”.
With the nation also calling the planned summit “desperately necessary” to mend
the US-North Korea relationship, the doors could still be open for a summit to
take place. Markets will be paying very close attention to how the Trump
administration responds to North Korea’s conciliatory stance. Any further signs
of de-escalating tensions between the US and North Korea could revive risk
sentiment. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Asian
stocks were on the defensive during early trade, as North Korea’s measured
response to the abrupt summit cancellation slightly soothed investor jitters.
European markets rebounded after the olive branch from North Korea and this
improving sentiment could support Wall Street in the afternoon.
Sterling quivers
as GDP disappoints
This
has already been a terrible trading week for the Pound, as cooling inflation
figures dented expectations over the Bank of England raising UK interest rates
in August.
Matters
worsened on Friday following reports that UK economic growth dropped to its
lowest rate since 2012. UK GDP growth slowed to 0.1% in the first quarter of
2018 according to the second estimate, which immediately damaged buying
sentiment towards the Pound. Today’s disappointing growth figures may weigh
heavily on sentiment while also forcing investors to scale back bets on a BoE
rate hike anytime soon.
Taking
a look at the technical picture, the GBPUSD remains bearish on the daily charts
as there have been consistently lower lows and lower highs. Repeated weakness
below the 1.3400 level could invite a decline towards 1.3320 and 1.3250,
respectively.
Dollar steady ahead of Powell speech
King
Dollar was steady against a basket of major currencies this morning ahead of
the upcoming speech from Fed Chair
Jerome Powell.
He
will be addressing financial stability and central bank transparency before the
Sveriges Riksbank Conference in Stockholm later today. The Greenback could
appreciate further is Powell sounds hawkish and offers fresh insight into the
Fed’s monetary policy tightening path beyond June. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
With the widening interest rate differential still favouring the Dollar and
expectations elevated over an interest rate hike in June, Dollar strength is
likely to remain a dominant market theme.
Taking
a look at the technical picture, the Dollar Index remains heavily bullish on
the daily charts. A decisive breakout above 94.00 could encourage an incline
higher towards 94.20 and 94.50, respectively.
Is the Oil bull
run over?
The
prospect of OPEC and Russia easing supply curbs to counterbalance falling
output from Venezuela and potential decline in Iranian exports has exposed oil
to downside risks.
Price action suggests that bulls may be
struggling to find support from geopolitical risk factors to sustain the
current rally. While initially speculation of tighter global supply was a theme
that heavily supported oil, the fundamental drivers could change if OPEC and
co. ease supply curbs. With the possibility of rising production from Russia,
OPEC and US Shale renewing oversupply concerns, Oil remains exposed to downside
risks.
In
regard to the technical perspective, WTI Crude is at risk of sinking towards
$68 if bulls are unable to maintain control above $70.
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:
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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