Investor
sentiment was initially punctured by a report from the Financial Times stating
that the Trump administration had cancelled trade talks with Chinese officials.
Although White House economic advisor Larry Kudlow denied these rumours, this
did little to dispel nerves and confusion among market players. With renewed
uncertainty over US-China trade talks adding to the horrible cocktail of
geopolitical risks sapping risk appetite, this could be a rough and rocky
trading week for equities across the globe.
Asian markets
ended on a muted note amid the trade confusion while European stocks are
trading lower thanks to global growth fears and Brexit uncertainty. With the
unfavourable market conditions forcing investors to avoid riskier assets, Wall
Street is seen opening on a cautious note this afternoon.
Dollar wobbles near 3-week high
One would have expected the Dollar to sprint higher amid the market
caution and general gloom. But the Greenback’s subdued price action in recent
days suggests that the currency is clearly struggling to benefit from
safe-haven flows. A logical explanation behind the shaky movement in the Dollar
Index could be based around speculation over the Fed taking a pause on rate
hikes this year. With the economic calendar for the United States void of Tier
1 economic reports today, the Dollar is likely to influenced by technicals. An
intraday breakdown below 96.20 is seen opening a path back towards 96.00 and 95.75.
Alternatively, a solid daily close above 96.50 invites further upside towards
96.80.
Sterling jumps on easing ‘no deal’
Brexit fears
Sterling bulls
were instilled with a renewed sense of confidence today with the GBPUSD
breaking above 1.30 as fears over a ‘no deal’ Brexit continued to ease.
Growing
speculation over the government extending article 50 to avoid a nightmare
no-deal outcome is likely to continue supporting Sterling in the near term.
However, the Pound’s medium- to longer-term outlook remains shrouded by
Brexit’s endless uncertainty. Sterling volatility and sensitivity to Brexit
headlines are likely to increase ahead of the parliamentary debate on January
29th. One must always expect the unexpected when dealing with Brexit,
especially when considering how the outcome of the debate and vote on May’s
‘Plan B’ remains open to question.
Focusing on the
technical picture, the GBPUSD turned bullish on the daily charts after prices
marched through the psychological 1.3000 level. A solid daily close above this
level is seen opening a path higher towards 1.3072.
Commodity spotlight – Oil
WTI Crude edged
higher today after slipping towards $52 in the previous session. Although
prices seem to be stabilizing, this stability may be short-lived by global
growth fears and renewed trade uncertainty. For bears to jump back into the
game, WTI Crude needs to secure a daily close below $52. Alternatively, if
prices end up pushing above $54.35, the next key point of interest will be
found at $55.
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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