Encouraging reports of China placing its first major order of U.S.
soybeans in more than six months is a symbolic move seen elevating global
sentiment and boosting appetite for riskier assets. The trade optimism was
clearly reflected in Asia this morning with stocks closing broadly higher,
following the positive lead from Wall Street overnight. European markets are
seen benefiting from the risk-on vibe, with the bullish momentum trickling down
into Wall Street later this afternoon.
Although easing trade tensions are positive for stock markets, the
upside is poised to face obstacles down the road. Global equity bulls remain
threatened by concerns over plateauing global economic growth, Brexit turmoil
and political risk in France among many other geopolitical risk factors.
Naira
steady ahead of Nigeria’s inflation report
The Nigerian Naira held steady against the Dollar this morning as easing
U.S.-China trade tensions stimulated investor appetite for riskier assets. With
attraction towards the Dollar likely to diminish amid the risk-on sentiment,
this will be beneficial for emerging market currencies, including the Naira.
Investors will direct their attention towards the pending inflation
figures for November. Signs of rising inflationary pressures are seen prompting
the Central Bank of Nigeria to re-assess its monetary stance for 2019.
Pound
steadies after May survives confidence vote
The battered Pound breathed a sigh of relief after Theresa May survived
a vote of no-confidence in her leadership. While this development removes an
element of uncertainty amid the Brexit turmoil, it certainly is a major blow to
her authority and power.
With May heading off to Brussels for the second time this week,
investors will be closely watching to see if she is able to gain concessions
from the EU on the Brexit deal. If May returns back to the United Kingdom
empty-handed, a second referendum to stay in the European Union could be an
option on the table. In regards to the technical picture, the GBPUSD is staging
an impressive rebound with prices trading back towards 1.2700 as of writing. A
solid breakout above this level will open a path towards 1.2760 in the near
term.
Euro
higher ahead of ECB meeting
All eyes will be on the European Central Bank meeting this afternoon
where the bank is set to officially end its Quantitative Easing (QE) program.
With QE officially ending and no rate moves expected, investors should
not be quick to label this meeting as a potential non-event. Given the
disappointing economic figures from Europe lately, heightened political risk in
France and Italy’s budget dramas, it will be interesting to hear European
Central Bank President Mario Draghi’s thoughts. Much attention will also be
directed towards the latest economic forecasts to see if the European Central
Bank is concerned over the developments in Europe. The Euro is likely to
depreciate if Draghi strikes a dovish tone and expresses concerns over the
health of the Eurozone.
Currency
spotlight – Dollar
Widening interest rate differential between the Federal Reserve and
other major banks across the world empowered Dollar bulls for the most part of
2018. Investor optimism over the health of the U.S. economy boosted appetite
for the Dollar in times of uncertainty. With expectations over higher U.S.
rates and safe-haven demand supporting the Dollar, the currency was king of the
hill in the FX arena.
However, there has been a change of attitude in recent weeks with dovish
comments from Fed officials and disappointing economic data clouding the Dollar’s
outlook for 2019. With expectations mounting over the Fed taking a pause on
raising interest rates next year, the sentiment pendulum is seen swinging to
the favour of the bears. Focusing on the technical picture, the Dollar Index
has the potential to slip towards 96.60 if 97.00 acts as a firm resistance.
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
http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
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