The United States and China persistent trade tensions arising between them has undoubtedly left a mark on emerging market currencies.
Ongoing trade uncertainty developments as a result of rising risk situations created ,has brought about a riskier assets tendencies and this circumstances continues to reflect across financial markets.
Its not a good news for the Naira and Nigerian economy as this trade issues continues to fuel concerns over the low rate of growth , consequent upon is the pressures on oil prices.
Nigeria’s economic recovery and exchange rate stability may be at risk as it will continue to be threatened if US-China trade war results to oil prices collapse.
To prevent external risk and for Nigeria to shield itself from oil price volatility , there is need for the country to move away from relying too much on oil, the need to diversify to other ways of improving the economy is necessary.
Bitcoin explodes higher .
Bitcoin jumped as much as 10% days back to almost $9000 as it has been on the news since this week with the financial markets.
Basically , the news of Bitcoin huge and sudden rise was about the actions on price increase which attracted much interest. This is the primary factor.
Looking at the technical picture which suggests that the cryptocurrency remains heavily supported by the bullish ‘golden cross’ formation on the daily charts.
The bullish ‘golden cross’ formation happens when the 50-day moving average crosses above the 200-day moving average.
A solid daily close above $9000 has the potential to open a clean path towards $10,000 as the prices slowly approaches $9000, least resistance pointing north.
Brexit drama and political chaos caused Pound lost.
The past few days have certainly not been kind for The British Pound has definitely not been in a good notes in the past few days as it remains one of the weakest G10 currencies.
The British Pound remains fundamentally bearish since the resignation of Theresa May brings uncertainty over Brexit. Technical traders will continue to watch how prices behave around 1.2620. At this point it will signal a selloff towards 1.2500 in the short to medium term when there is daily close below this point.
As investors assimilates the results of the European Parliament elections as Euro remains on the waiting below 1.1200, the EURUSD is positioned to trend lower with concerns over Italy’s budget somewhat appetite for the Euro,
There have been consistently lower lows and lower highs as the EURUSD remains bearish on weekly charts when we look at the technical standpoint. Sustained weakness below 1.1200 is likely to open a path towards 1.1100 and 1.1000, respectively.
Commodity spotlight – Gold
As serious US-China trade tensions and Brexit uncertainty issue sends investors rushing towards the Dollar, Gold tries working hard for direction today with prices moving around $1283.
Bulls remain in control above $1280 though gold took off to a slow start this week. The next main point of interest for Gold may be found around the $1300 if this level proves to be anything to go rely on.
Credits: C David.JOIN OUR COMMUNITY