Forex

Forex Weekly Outlook June 6 -10

Published

7 years ago

June 5, 2016

Forex Weekly Outlook June 6 -10

The US economy failed again in May to create enough new jobs to support consumer spending after falling short in April. Although, manufacturing expanded moderately 51.3, but wasn’t enough to curtail the slump in the non-manufacturing sector from 55.7 to 51.3.

Also, unemployment rate improve from the previous 5 percent to 4.7 percent, while average hourly earnings rose 0.2 percent. With the economy adding just 38,000 workers to payrolls in May, it is right to say June rate hike is now officially out of the picture, even if we were to add 35,000 Verizon Communications Inc. workers on strike. It will still be below 159,000 forecast by economists prior to the release.

Like I said last week, the more investors price in the possibility of unchanged rate, the more the dollar will lose it’s gains like we saw on Friday after job report. This week, volatility is expected across the board as investors try to decipher possible market direction amid uncertainties surrounding the EU referendum in the UK. Fed Chair Yellen Janet is scheduled to speak on the economic outlook and monetary policy in Philadelphia on Monday.

Brexit, UK

The UK economy have been saddled with the referendum vote due in June, but not only that, certain sectors of the economy are yet to pick up, especially the manufacturing sector where orders have dropped. In April, inflation fell to 0.3 percent for the first time since September, moving farther away from BOE 2 percent target. In fact, key officials of the Bank of England’s Monetary Policy Committee were reported saying the economy will require an additional stimulus even if the referendum vote is positive.

Last week, the pound fell against all its counterparts after polls showed that number of people in support of Britain exit from the European Union has risen more than the number of people against it. Even after May economic data shows service sector growth is picking up, this sort of volatility is expected this week as we await June 23 referendum vote. Sellers and Buyers should beware.

Australia

The Australian economy is important because of the potential it holds, if well understood. Aussie dollar lost more than 70 percent of its early year gains after inflation unexpectedly contracted -0.2 percent in the first quarter of the year. Prompting the Reserve Bank of Australia (RBA) to cut rates by 25 basis points, but surprising RBA rebuke any further rates cut while insisting the economy is on track as record low interest rates are aiding economic revival.

Here are two take away, Australian economy grew 1.1 percent in the first quarter, more than 0.7 percent recorded in the final quarter of 2015. This couple with central bank data that showed business lending rose at the fastest pace in seven years and the unemployment rate of 2 1/2 year low, are key indicators that consumer spending would pick-up soon and further strengthens the Aussie dollar, especially now that the US June rate hike is out of the picture. RBA Governor Glenn Stevens is expected to announce cash rate decision on Tuesday.

New Zealand

The Kiwi economy has shown remarkable recovery since retail sales plunged in the first quarter of the year. The economy was boosted by a 2.6 percent surge in Global Dairy Trade price Index in May and subsequently reflects in the 292 million trade surplus. With the Reserve Bank of New Zealand raising its inflation expectation for the second quarter and business confidence increasing to 11 percent in May amid growing construction and tourism sector. It is normal for the Kiwi dollar to respond likewise.

Japan

The US job report just compounded Bank of Japan woes, one, Japan is looking for ways to intervene in its currency gains and has repeatedly said the yen move is one sided and “considered undesirable“. Two, Japan can’t intervene because of the G7 agreement that prohibit nations from using currency devaluation as a tool to stimulate growths (exports), but with investors fleeing the dollar, Euro and Pound, the flashlight is once again on the yen this week and could open up 105.21 price level against the dollar, a sustained break should give us 102.21.

China bank holiday on Thursday and Friday. Click here to see our favourite pairs this week.

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Forex Weekly Outlook June 6 – 10 (USDJPY)

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Nigeria’s Central Bank Initiates Bold Currency Reforms, Naira Hits Record Low

Nigeria’s central bank allowed the naira to drop about 2% on the official market to a record low on Wednesday, but the currency’s rate remained above where it trades at central bank auctions and on the black market.

Published

6 hours ago

June 7, 2023

Investors King

Nigeria is trying to find a way to unify its multiple exchange rate system, used to keep the naira artificially strong.

New President Bola Tinubu told members of his governing party last week that the country would not have multiple exchange rates anymore.

The naira fell as low as 475 naira to the U.S. dollar from Tuesday’s trades of around 465 naira, before recovering to 466 naira.

Traders said the central bank had allowed them to trade the currency as weak as 475 naira to the dollar on the official market, outside a previous band of 460 to 467 naira to the dollar.

In the past, the bank has allowed the naira to weaken in 5 naira increments.

The central bank has been adjusting the naira gradually on the official market to avoid a large-scale devaluation.

The bank sold the dollar at 645 naira at its Friday auction, fuelling speculation that a devaluation which could weaken the official exchange rate closer to the auction level was imminent.

Last Thursday, the central bank denied devaluing the naira, following media reports of a big fall in the currency after Tinubu met the central bank governor.

Naira

Dollar to Naira Exchange Rate Today June 7th, 2023

As of June 7th, 2023, the dollar to naira exchange rate is 1 USD to 750 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦750, Investors King reports.

Published

9 hours ago

June 7, 2023

Investors King

As of June 7th, 2023, the dollar to naira exchange rate is 1 USD to 750 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦750, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦753 and ₦750 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦753 and sold for ₦750.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN)	Black Market Exchange Rate Today
Buying Rate	753
Selling Rate	750

Investors King understands that although the dollar to naira opened at N750 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Wednesday, June 7th, 2023, individuals in the black market purchased one US dollar for N753 and sold it for N750. This shows that the value of the Naira declined slightly when compared to Tuesday, June 6th, 2023, when the local currency was exchanged at N748 and sold for N750.

To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:

Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.

Naira

CBN Denies Devaluing Naira, Says News is Fake

The Central Bank of Nigeria (CBN) has denied devaluing the Nigerian Naira from N464.67 per dollar to N631 reported by some online platforms.

Published

6 days ago

June 1, 2023

Samed Olukoya

The Central Bank of Nigeria (CBN) has denied devaluing the Nigerian Naira from N464.67 per dollar to N631 reported by some online platforms.

The platforms had quoted Importers and Exporters (I&E) foreign exchange window used by the central bank as the official exchange rate as its source, however, a check by Investors King showed that the Naira to Dollar exchange rate opened at N464.10 and closed at N464.67 on Wednesday.

A top official of the apex bank, who told this medium that the report is completely false, warned that such reports could have serious adverse consequences for the economy.

“The report is not true. The CBN has not devalued the naira. The exchange rate of the naira on the FMDQ website as at yesterday was N464.67 per dollar. The authors of the report may have their own agenda, but the CBN’s plan is that the best approach is to allow for a gradual convergence of all the rates.”

According to the top official, the CBN has not changed its strategy of allowing a gradual convergence of the parallel and official market exchange rates.

President Bola Ahmed Tinubu, during his inauguration speech, had announced that one of his administration’s agenda is to converge the nation’s numerous exchange rates and streamline business processes to encourage foreign investors’ participation in economic growth.

The new president went on to announce an end to fuel subsidy that has plummeted the nation’s resources at the expense of development in strategic sectors.

On Tuesday, the Nigerian stock exchange responded positively to the news with investors scooping as much as they could ahead of a projected better economy. The Nigerian stock market appreciated by over 5% in a single day, the largest of such gain in 30 months and the second largest in 7 years.