FXTM Senior Research
Analyst
Rising inflationary pressures in
Nigeria will certainly complicate the Central Bank of Nigeria’s efforts to cut
interest rates to stimulate growth.
Smart
Nigerians are getting shares of the new Lagos by acquiring plots and hectares
of land at Ibeju Lekki through COVELAND LIMITED. What are you waiting for?
Click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html
The nation’s annual inflation edged up
to 11.24% in September 2019, its highest level in three months after falling to
a three-and-a-half-year low of 11.02% in August. Given how the CBN governor has already made
it clear that inflation must hit single digits before a rate cut could be
considered, it remains uncertain whether the central bank will cut interest
rates before year end.
A rate cut could inject the Nigerian
economy with a welcome boost, as it stimulates consumption which accounts for
roughly 80% of GDP. But However, cutting the MPR when the inflation rate is at
11.22 percent risks further overheating prices. Like other economies, Nigeria
may be exposed to the impacts of a global slowdown but its economy is very
different from the US’ which is currently experiencing anemic price inflation.
This may be why the Central Bank of Nigeria decided to prioritize reducing
inflation to single digits and said it is in no hurry to reduce its key rate.
Wow!!! This landed property
with a C of O @ Abraham Adesanya Roundabout, Ajah suits your taste. Your
colleagues have started buying. What are you waiting for? Click: http://www.tectono-business.com/2019/08/urban-prime-one-estate.html
In the absence of cutting interest
rates, the CBN has raised the country’s loan to deposit ratio for banks to 65%
from 60%. Making sure money is in circulation instead of being tied up in
government bonds sounds like a logical way to keep the economy on the road to
recovery. However, it remains to be seen whether this will be enough to promote
growth.
Trade hopes lift risk mood; Brexit drama continues
There is a mood of optimism and hope
across financial markets on Tuesday morning thanks to upbeat comments from
President Donald Trump regarding the progress of trade talks with China.
Have
you thought about having a 5-Bedroom Apartment with Penthouse and Indoor
Swimming Pool near Pan Atlantic University?
For details, click: http://www.tectono-business.com/2019/08/have-you-thought-about-having-5-bedroom.html
Given how the President said China has
signaled that negotiations over the initial trade deal are moving in the right
direction, expectations remain elevated over both sides signing an agreement at
a meeting in Chile next week. This positive sentiment is supporting Asian
stocks during early trading and is likely to trickle down to European markets
later this morning. While the encouraging mood across financial markets will
remain stimulated by trade optimism, risk aversion could still make an abrupt
return should talks drag on or turn sour.
Pound volatility expected as Brexit drama continues
The past few days have been volatile
for the British Pound due to ongoing uncertainty and constant drama revolving
around Brexit.
Business
executives and CEOs like you always bring their vehicles to GOF AUTOS
LTD for body works, painting with Sikkens paint and oven baking. For
details, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html
Sterling seems to be catching its
breath early this morning as MP’s prepare to vote on Boris Johnson’s Withdrawal
Agreement Bill later this afternoon. If the deal hits a brick wall, the ball
then gets hurled back to Brussels as we await confirmation of the Government’s
Brexit extension request. Should MPs back the Prime Ministers deal, a programme
of motion will take place shortly after, followed by a debate on amendments of the
bill on Wednesday. Regardless of what happens today, the British Pound is set
to remain volatile.
With regards to the technical picture, GBPUSD
has broken above the bearish channel on the weekly timeframe. A solid daily
close above 1.30 should inspire a move towards 1.3160 in the medium term.
Should 1.30 prove to be a stubborn resistance level, I see Sterling declining
back towards the 1.2700 support.
Successful
business managers like you have gotten big deals from sponsoring business
publications on GLOBAL BUSINESS CLINIC? For details, click: http://www.tectono-business.com/2019/05/sponsor-business-publication-on-global.html
Dollar Index poised for further declines?
There has not been much action in the
Dollar Index (DXY) since the start of the week with prices trading around 97.76
as of writing.
The heavy selloff witnessed last week
has placed bears in a position of power. The DXY is under pressure on the daily
charts with prices trading under the 200 Simple Moving Average. Sustained
weakness below the 97.50 level should encourage a decline back towards 97.00 in
the short to medium term.
Are you aware that many
Nigerian exporters have been defrauded in the process exporting their products?
To export successfully and get paid, click: http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Commodity spotlight – Gold
Gold is likely to remain on standby in
the absence of a fresh directional catalyst. The precious metal is waiting for
the next big theme or market-moving event that will influence global sentiment
and risk appetite. Until something fresh is brought into the picture, Gold is
positioned to trade within a modest range in the short to medium term.
Looking at the technicals, all eyes
will remain on the psychological $1500 level. Sustained weakness below this
point should inspire a decline towards $1470. Alternatively, a solid breakout
above $1500 will most likely open the doors towards $1515 and $1525,
respectively.
No comments:
Post a Comment