Forex Weekly Outlook 15th Oct - 19th Oct, 2018

Last week was interesting in the financial markets. The dollar extended its slide on the back of Trump's comment,  downgrade of Global growth forecast by IMF and perhaps the dollar took a cue from the decline in global equities. Trump said that FED is acting to "fast to raise rates". He also said that "FED is crazy".

EURUSD 4 hr Chart

The Eurusd,at the beginning of last week fell to a low of 1.1431 on Italian concerns and rebounded to a peak of 1.1610. The rebound coincided with the resignation of a top official in Trump's administration. Well, that was a modest rally which is not supported by data. Recent data from Germany, which is the biggest economy in Europe is not looking good. There was a decline in the last export and import data released. Industrial Production also declined. A break of 1.1610 would target next resistance at 1.1814. On the downside, a break of of minor support at 1.1534 would target EURUSD low of 1.1431 and then 1.1300.

Despite softer UK GDP data last Friday, GDP had little impact. The reason is that Brexit is the primary focus in UK. Investors are waiting for the outcome of meetings of the EU officials and UK officials on Terms of withdrawal. Should there be a 'good' deal to both parties, GBP would soar. If there is a 'no deal', am afraid, GBP would tank.

Looking ahead this week, US Retail sales report is scheduled to be released on Monday. On Wednesday, Minutes of September FOMC meeting would be released.

Employment, Inflation and Retail sales data are scheduled to be released this week in the UK. All these data to me is a distraction, the primary focus is Brexit.

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Will EURUSD rebound or fall below this year's low @ 1.1507?

Technically, Double bottom has been spotted on EURUSD Daily & Weekly. This low @ 1.1507 is instructive...

If this low is breached, then we see a further downside moves otherwise watch for the neckline for possible upside moves.

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Peacock Markets Announces Free Shipping in Nigeria's Capital City, Abuja

Online Retailer, Peacock Markets has announced Free Shipping on all purchases in Nigeria's Capital City, Abuja.

One of the great initiatives they have this year is to give out Online Stores for Free to prospective Sellers. . This simply means, any trader in Nigeria, who is desirous on owning an online Shop, can now  register on Peacockmarkets.com

Some of the benefits you will enjoy if you sell online are:

1. With investments on online promotions and good SEO your business can be accessible to customers searching for your products.
2. You have a broader customer base. With brick and mortar store, you are limited to your locality.
3. Business is open 24/7. Sales can be made anytime and customers can buy when it suits them.
4. Overheads are reduced.

Peacock Markets has brought great shopping experience both to the customers and sellers. Customers can now enjoy Free Shipping on all orders in Abuja and prospective Sellers can own their own Online store and start selling their products.

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Dollar Recovery Week Continues

The Dollar rebound continued in Asian and early European trade today as US yields pushed higher with 10 year coming close to the psychologically key 3% mark.

The one exception to dollar strength was the Aussie which managed to hold its ground at the 0.7900 figure. The pair was boosted by upbeat RBA minutes which showed that monetary policymakers were encouraged by rebound in consumer demand in Q4. The RBA remains resolutely neutral for now, but if Australian economy can demonstrate wage growth the central bank could shift into a tightening mode this year rather than next and Aussie should outperform as a result.

This week US Treasury will auction off more than a quarter trillion of short-term securities and investors will keep a keen eye to see how strong the take up will be. We noted yesterday that US dollar was due for short squeeze recovery rally and today's price action is confirming that FX markets primed for further dollar strength.

USDJPY was the primary beneficiary of the move, taking out the 107.00 figure in early London trade as the pair now appears to have made a solid bottom at 105.50. The pair still remains in long term downtrend but could easily trade to 108.00 before encountering any serious resistance.

Both EURUSD and GBPUSD were lower as well hitting 1.2350 and 1.3950 respectively and both could slide further as the day proceeds if the US corps extend the pro-dollar rally. There is no major US data on the docket today so flows will be driven by fixed income and equity markets for the rest of the day and dollar longs could test 1.2300 and 1.3900 in both pairs as shorts begin to cover.

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Written by guest blogger, Boris Schlossberg

Author Bio

 Boris Schlossberg is the Managing Director of FX Strategy for BK Asset Management. Boris has more than 20 years of financial market experience and has authored many financial books. 

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Zinox Group acquires Konga

Zinox Group of Companies has acquired ecommerce giant, Konga. The acquisition was confirmed by the Head of Corporate Communications, Zinox Group, Mr. Gideon Ayogu.

As part of the acquisition, Zinox Group would assume ownership of the ecommerce group which includes Konga.com, Nigeria's online Mall, Kongapay, a CBN licenced mobile money platform with over 100,000 subscribers as well as KOSExpress, a logistics arm of the company.

Zinox Group pioneered ecommerce in Nigeria with the launch of Buyrightafrica.com which was challenged by the absence of credit/debit card and e-payment infrastructure when it was launched over 12 years ago.

The company said the acquisition was expected to create employment for over 5,000 Nigerians within a short period.

According  to Mr Gideon Ayog Zinox Group has always had an interest in Konga because of integrated nature of the four quality companies in one.

In a bid to put Konga on a sound footing, the company announced a shift to a prepay-only model, essentially putting a stop to Pay-on Delivery - a decision which formed part of internal restructuring. This is to reposition Konga for a greater share of the ecommerce pulse in Nigeria.

Konga was founded in 2012 by Sim Shagaya.

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