Financial analyst highlights impact of dip in Nigeria's inflation rate
…forecasts potentially busy week for global markets Senior Market Analyst at FXTM Academy, Mr. Lukman Otunuga, has described the unexpected slowdown in Nigeria’s inflation in January 2026 as a positive
...forecasts potentially busy week for global markets
Senior Market Analyst at FXTM Academy, Mr. Lukman Otunuga, has described the unexpected slowdown in Nigeria’s inflation in January 2026 as a positive development that could create room for the Central Bank of Nigeria (CBN) to reduce interest rates next week.
Despite the moderation, prices still rose 15.1 percent year-on-year, slightly down from 15.1 percent in December and well below the 19.5 percent median estimate. Otunuga attributed the decline partly to lower food prices, which have helped ease inflationary pressures since the CBN raised benchmark rates to 27 percent in November.
“The question is not if, but how much the CBN will slash interest rates next week,” Otunuga said, noting that the argument for lower rates is further supported by the Naira’s eight percent year-to-date appreciation against the US dollar.
Read Also: January inflation eased to 15.19%with lower food, fuel, gas prices
On global markets, Otunuga predicted a relatively quiet start to the week, with the US dollar range-bound, gold slightly lower, Bitcoin directionless, and oil benchmarks waiting for fundamental drivers.
However, he highlighted potential volatility from top-tier economic data and geopolitical developments, including US-Iran talks in Geneva, which could influence oil prices already up more than 10 percent year-to-date amid geopolitical risks.
In the cryptocurrency market, Bitcoin is down over 20 percent year-to-date, hovering around $70,000, with $60,000 marked as a critical liquidation level.
Otunuga also flagged key upcoming economic events, including the Federal Reserve minutes, US Personal Consumption Expenditure (PCE) data, and the delayed US Q4 GDP report.
He noted that insights from these reports could reinforce market expectations of multiple Fed rate cuts in 2026, potentially weighing on the dollar while supporting gold and US equities.
Regarding gold, he said prices closed last week above the psychological $5,000 level but started Monday cautiously.
“With China’s markets closed this week, liquidity will be thinner, with geopolitics and US data driving prices. Gold could rebound toward $5,100 if $5,000 holds as support, but a break below may see declines toward $4,880–$4,850,” Otunuga added.