It is becoming
clear that the Naira’s stability is the product of repeated intervention by the
Central Bank of Nigeria. While the local currency’s resilience looks
encouraging, falling Oil prices are seen complicating the CBN’s effort to
defend the Naira. With heavily depressed Oil prices denting government revenues
and reducing foreign exchange reserves, the local currency remains vulnerable
ahead of the new year.
Hawkish Fed hike crush hopes of Santa rally
The last shred of hope over the possibility of a
Santa Clause rally was crushed by the Federal Reserve’s hawkish rate hike on
Wednesday.
Global equity
markets were under intense selling pressure after the Fed sounded less dovish
than expected. Although a rate hike in December was already heavily priced in
by markets, investors who were looking for a ‘one and done’ statement were
highly disappointed after the Fed flagged ‘some further gradual increases’ on
rates are still on the cards. While the lower revision of the dot plot from
three to two rate hikes in 2019 offered a dovish touch, the overall tone of the
statement coupled with Fed Reserve Chair Jerome Powell’s press conference were
hawkish.
Market players
were looking for reassurance from the Fed as the year slowly comes to an end,
but it seems that that opposite has been achieved with uncertainty in the
air. With the Federal Reserve leaving
the doors open to further rate hikes despite turbulent market conditions,
market sentiment is poised to remain cautious for the rest of 2018. Powell’s
hawkish comments during his press conference compounded to the uncertainty and
confusion, especially when considering how he was dovish some weeks ago. In
regards to the technical picture, the Dollar Index is seen attacking 96.00 if
bears are able to break below 96.40.
Commodity spotlight – Gold
Gold prices were
thrown onto a rollercoaster ride mid-week after the Federal Reserve’s less
dovish than expected tone caught investors by surprise.
Buying sentiment
towards the Dollar initially received a boost following the interest rate hike
but gains were later surrendered thanks to growth concerns. With risk aversion
boosting appetite for safe-haven assets and the Dollar struggling to benefit,
Gold has the potential to shine into 2019. Focusing on the technical picture,
the yellow metal is bullish on the daily charts as there have been consistently
higher highs and higher lows. A decisive breakout above $1,250.70 is seen
opening a path towards $1,260.
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
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