Connect with us

Forex

Forex Weekly Outlook June 27 – July 1

Published

on

Euro currency

Global financial markets were thrown into turmoil after the U.K. exit the world’s biggest market, the European Union. Pushing the pound to over 30-year low against the US dollar as investors scramble for haven assets.

The risk was further compounded by the decision of Prime Minister David Cameron and the British representative to the European Union Jonathan Hill to resign following Brexit. It is yet unknown when the UK will trigger article 50 of the Lisbon Treaty and get on with the exit process, which could take between 2 to 5 years, but the Governor of the Bank of England Mark Carney in his post-Brexit statement said the apex bank has prepared for this day and as such has made provision for about 600 billion pounds to support the UK financial system and strengthens businesses to create jobs and enhance growth going forward.

On the other hand, the American labor market rebounded last week after May’s weaker than expected non-farm payroll, the unemployment claims improved by 18,000 to 259,000, which suggest moderate growth in the second quarter of the year. Although there were weakness in the housing and manufacturing sectors, but was overshadowed by the increase in demand for the US dollars due to Brexit.

On BOJ, the continuous rush for haven assets has compounded Japan’s situation, while Japan Finance Minister Taro Aso has repeatedly said the yen move is one sided,  I don’t think G7 and G20 will give BOJ go ahead to intervene in the yen’s gains, considering global Risks.

This week, US first quarter final GDP, US consumer confidence index, US crude oil inventories, UK current account, Canada monthly GDP, US unemployment claims and purchasing Manager indexes (China, US, UK) are key economic factors to look out for. Here are my forex weekly pick EURUSD, AUDJPY and NZDJPY.

EURUSD

EURUSDWeekly

Click here to enlarge

For the past two weeks I have been bearish on EURUSD but the global uncertainties weigh upon it, hence, the pullback before last week bearish confirmation. As long as price remains below 1.1338, I am bearish on EURUSD but with entry around 1.1090, that double as our target two weeks ago and also a price continuation below the channel. Target for the week will be 1.0714, while keeping an eye on global growth as things unfold in coming days.

AUDJPY

AUDJPYWeekly

Click here to enlarge

The same two weeks ago I made mention of AUDJPY pair, although our target was hit at 75.83. The pair still holds considerable sell potential of around 272 pips. I remain bearish on AUDJPY as long as 78.15 resistance level holds, with 73.54 as the target.

NZDJPY

NZDJPYDaily

Click here to enlarge

After failing to sustain a break of the downward trendline started since last year. The pair has finally given in to Brexit pressure reach over 4-year low on Friday. This week, as long as 73.90 resistance level first established in 2008 hold. I am bearish on this pair with 69.94 as the target.

This should be traded with great caution as high volatility is expected across the board this week as investors try to decipher both ECB and BOE direction going forward. All take profit targets were hit last week.

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.

Continue Reading
Comments

Naira

CBN Will Redesign Naira Notes Every Five to Eight Years; Say Emefiele

The central bank will henceforth redesign the nation’s legal tender every five to eight years

Published

on

New Naira Notes

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has said the bank will henceforth redesign the nation’s legal tender every five to eight years.

The apex bank governor revealed at the unveiling of the new naira notes on Tuesday. 

Godwin Emefiele explained that the naira redesign is in line with global best practice noting that the naira needed to be redesigned and re-issued every five to eight years.

According to the CBN governor, previous administrations lacked the political will to approve the redesign of the naira notes. Stating that it is regrettable that the naira has not been redesigned for the past 19 years. 

“In the past, I have to confess that attempts by the CBN to redesign and re-issue the naira notes have been resisted. It is only President Muhammadu Buhari that has exhibited the courage to do so,” the CBN governor stated. 

Emefiele added that going forward, naira notes will be redesigned at intervals to address some peculiar issues. 

 “After today, the CBN will begin to redesign and reissue the naira every five to eight years,” he said. 

Investors King had earlier reported that President Muhammadu Buhari unveiled the redesigned naira notes at the Federal Executive Council (FEC) meeting today. 

Among those who joined the president with the unveiling include the CBN governor and the EFCC chairman.

Recall, in October, the CBN announced it will redesign the N200, N500 and N1,000 notes in line with its mandate.

Meanwhile, the CBN governor has disclosed that the new naira notes can not be counterfeited because of the features embedded in them. 

Similarly, he added that security agencies would be monitoring people making withdrawals at the counter to sniff out money laundering and unravel illegal usage. 

“The CBN has moved to a cashless economy. We will restrain the volume of cash someone will withdraw over the counter. We will follow up with the person’s data to know the reason for such withdrawal,” he concluded.

Continue Reading

Naira

President Buhari Unveils New Redesigned Naira Notes, See Pictures

Buhari launched the new naira notes as the CBN forges ahead with redesign plans.

Published

on

New Naira Notes

President Muhammadu Buhari on Wednesday unveiled the new redesigned Naira notes at the State House in Abuja following a series of sensitisation to ensure that Nigerians are aware of the deadline for the old notes.

New Naira Notes

Godwin Emefiele, the governor of the Central Bank of Nigeria, who was also present at the launching explained that the redesigned notes would help curb counterfeit, reduce hoarding and support the apex bank’s cashless policy.

Earlier in October, the central bank announced it was redesigning the N200, N500 and N1,000 notes in line with its mandate. The apex bank further stated that the newly redesigned notes would be available on December 15, 2022.

However, Emefiele later announced the central bank won’t wait until December 15th before unveiling the new notes on November 2023.

He said, “100 days is enough for any person from any part of Nigeria to deposit his money in the bank and get his money when the new notes are released.

“For information, indeed, we are no longer waiting till December 15th to unveil and begin to release the new notes.

“By the special grace of God, tomorrow, which is the 23rd of November 2022, the President has graciously accepted to unveil the new currencies and the new currencies will be unveiled tomorrow at the Federal Executive Chamber by 10am.”

New Naira notes

Meanwhile, the central bank-led monetary policy committee raised interest rates by another 100 basis points from 15.5% to 16.5%. Bringing the total increase in 2022 to 500 basis points despite the challenges Nigerians are facing amid weak job creation and poor earnings.

The committee claimed the decision was based on the rising inflation rate that rose to 21.09% in October. However, given Nigeria’s economic structure and current situation, the persistent increase was mainly to lure foreign investors to invest in the economy against the developed economies that are equally raising rates to curb escalating inflation.

 

New Naira notes

Continue Reading

Naira

President Buhari to Launch New Naira Notes Today

CBN says Buhari is expected to introduce redesigned naira notes to the public today at the Federal Executive Council (FEC) meeting in Abuja.

Published

on

President Buhari - Investors King

Nigerian President, Muhammadu Buhari is expected to launch the redesigned naira notes today at the Federal Executive Council (FEC) meeting in Abuja.

The launch will precede the circulation of the affected currency which is billed for December 15, 2022. The FEC meeting is a weekly (Wednesday) meeting of the executive arm of government often presided over by the President or the Vice President.

The Central Bank Governor, Godwin Emefiele disclosed on the sidelines of the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, that the new naira notes will be displayed for public view on Wednesday. 

Therefore, the governor added that the CBN will not shift its deadline for all old notes to be returned to commercial banks in exchange for newly designed ones.

Investors King recalls that in October 2022, the central bank announced it will issue redesigned N200, N500, and N1,000 notes, effective December 15, 2022, while the new and existing currencies will remain legal tender and circulate together until January 31, 2023.

However, in a sudden change of schedule, the CBN governor noted that the unveiling will be done by the president today stating that the bank will no longer wait till December 15th to unveil and begin to release the new notes.

” By the special grace of God, tomorrow, (today) which is the 23rd of November 2022, the President has graciously accepted to unveil the new currencies and the new currencies will be unveiled tomorrow at the Federal Executive Chamber by 10am.” Emefiele started.

Meanwhile, the Monetary Policy Committee (MPC) which is the highest decision-making body for any issues related to Nigerian monetary policy has hiked the interest rates from 15.5 percent to 16.5 percent. 

According to CBN, the hike in interest rate is to curtain inflation and maintain economic stability. 

Speaking at the end of a two-day Monetary Policy Committee meeting yesterday, the CBN governor noted that the MPC voted to retain the cash reserve ratio at 32.5 percent and the liquidity ratio at 30 percent.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending