It is becoming
clear that a weakening Dollar remains one of the drivers behind the Naira’s
marginal gains on the parallel exchange. With the Dollar seen depreciating
ahead of the Fed meeting as investors remain on the side-lines, emerging market
currencies such as the Naira have the opportunity to appreciate further.
However,
geopolitical risk factors in the form of lingering trade tensions,
Brexit-related uncertainty and political risk in France are seen fuelling risk
aversion down the road. If Oil prices continue to depreciate and the Dollar
ends up rebounding from the risk-off mood, the Naira will most likely be one of
the many casualties.
Dollar weakens despite market caution
The Dollar is
struggling to find support from market caution ahead of the Federal Reserve
policy meeting this afternoon.
With a rate hike
in December already heavily priced in, investors will most likely direct their
attention towards the policy statement and press conference for clues on rate
timings in 2019. It must be kept in mind that dovish comments from Fed
officials and soft economic data have clouded the Dollar’s medium- to
longer-term outlook. Buying sentiment towards the Dollar is seen diminishing
further if the Federal Reserve implements a dovish hike. Although the Dollar
Index is trading near 2018 highs, it does feel like bulls are living on
borrowed time. A breakdown below 97.00 could trigger a decline back towards
96.50.
Gold shines ahead of Fed meeting
Gold bulls are
poised to remain in the driver’s seat as investors struggle to shake off
jitters over global economic growth and lingering trade tensions. A softening
Dollar boosted appetite for the yellow metal with prices trading marginally
above $1,248 as of writing. With the Dollar likely to remain depressed ahead of
the Federal Reserve meeting and risk aversion magnetizing investors to
safe-haven assets, Gold has the potential to appreciate further in the near
term. Technical traders will be closely observing how prices behave above the
$1,240 resistance level. If the upside momentum holds, the next key points of
interest will be at $1,250.70 and $1,258 – a level that resides just below the
200 Daily Simple Moving Average. In an alternative perspective, repeated
weakness below $1,240 will be good news for bears and should encourage a
decline back towards $1,228.00.
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