The
economy grew by 1.95% in real terms in the first quarter of 2018, thanks to
rising commodity prices. With Nigeria decelerating for the first time since the
end of the recession, could this be a wake-up call for the Central Bank of Nigeria? With inflationary pressures easing, there
remains a strong argument for the CBN to take action. An interest rate cut may
be what Nigeria needs to jumpstart economic growth this year.
Pound finds a
friend in BoE’s Vlieghe
The
battered Pound was thrown a temporary lifeline on Tuesday, after hawkish
remarks from MPC committee member, Gertjan
Vlieghe, slightly stimulated UK rate hike expectations.
Vleighe
stated during his parliamentary reappointmenthearing that interest rates could
rise up to six times over the next 36 months. Sterling jumped to an intraday
high of 1.3491 following the statement, before later surrendering gains as
investors turned to BoE Governor, Mark
Carney, for further guidance. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
It was interesting how Vlieghe was in favour of the BoE publishing a dot plot
on future rate hikes, however, Deputy Governor, Dave Ramsden, and policy maker, Michael Saunders, were both “more sceptical” about rate forecasts.
During
his testimony to the Treasury Committee, BOE Governor, Mark Carney, explained
that there were “temporary, idiosyncratic factors” that “impacted growth in the
first quarter of 2018”. Although he also stated that “interest rates are more
likely to go up than not”, but at “a gentle pace”, the Pound’s price action
suggests that investors remain unconvinced.
Taking
a look at the technical picture, the GBPUSD is under pressure on the daily
charts. Sterling has scope to extend losses if soft domestic economic data and
easing inflationary pressures in the UK delay monetary policy normalization. A
technical breakdown below the 1.3400 support level could encourage a decline
towards 1.3320.
Emerging market
currencies fight back
Most
emerging market currencies are powering higher today, following the lead of
increased risk sentiment as a result of the weekend developments that there
could be a breakthrough between China and the United States over trade
negotiations. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
EM currencies
may be poised to recover further amid the positive sentiment, but whether this recovery
has legs to continue will likely depend on whether investors take profit on the
USD. The global currency markets continue to be dictated by the resurgence of the
Greenback, and its direction will still provide guidance for other currencies,
as there are not any current indications of a new catalyst coming into play.
Commodity
spotlight – Gold
Gold
popped higher on Tuesday with prices hitting $1295 as the Dollar retreated from
five-month highs. However, gains on the yellow metal remained limited by the
improving risk appetite across financial markets. With easing tensions in the
US-China trade negotiations supporting risk sentiment and Dollar strength
currently a major market theme, Gold could be doomed to tumble further. The
fact that the yellow metal has already secured a solid weekly close below the
$1300 support level confirms that bears remain in control. Taking a look at the
technical picture, Gold has scope to extend losses if bears can break below the
$1280 level. Previous support around
$1300 could transform into a dynamic resistance that invites a decline towards
$1280 and potentially lower.
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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