Forex

Forex Weekly Outlook June 6 -10

Published

8 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, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

2 days ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

2 days ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

3 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.