Forex

Forex Weekly Outlook June 27 – July 1

Published

8 years ago

June 26, 2016

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

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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

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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

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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.

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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

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

10 hours ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,020 and sell it at N1,010 on Thursday, April 18th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

1 day ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,050 and sell it at N1,040 on Wednesday, April 17th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.