Forex

Forex Weekly Outlook January 9-13

Published

7 years ago

January 8, 2017

Forex Weekly Outlook January 9-13

The U.S dollar rebounded last week after job data showed the economy added just 156,000 jobs in December. Even though, this was lower than 175,000 jobs expected, wages rose 2.9 percent year-on-year. Signaling the labor market is reaching full employment.

However, with the unemployment rate rising 0.1 percent to 4.7 percent from 4.6 percent recorded in November, and wages reaching a 7-year high, experts believe worker shortages may become more frequent in 2017 and force businesses to raise wages even more in order to hire skilled workers.

This is expected to boost consumer spending and pressure costs, therefore, underscoring case for the Federal Reserve to raise rates at least 3 times in 2017.

While, in Canada, oil production cut continued to aid the economy and strengthen the position of the loonie. Bolstering trade balance to 26-month high in December, from a deficit of 1.0 billion. The unemployment rate ticked up to 6.9 percent from 6.8 percent, but a total of 53,700 jobs was created.

Although, the Bank of Canada Governor Stephen Poloz has stressed that there is still plenty of slack in the job market, a few experts have said that considering the fact that the U.S. is Canada’s biggest trading partner, that proposed Trump economic plan will boost job creation in Canada and further help revamp the economy after years of low oil prices.

In China, the People’s Bank of China raised the yuan exchange rate against the U.S dollar by 0.92 percent, making it the biggest one-day increase in more than 11 years. But the currency quickly slumped 0.5 percent after Goldman Sachs Group Inc. and other analysts called on clients to bet against the yuan, citing past scenarios, that the best time to bet against the yuan is after interventions that flushed out bearish positions and argued that intermittent intervention won’t work with Trump presidency, which is expected to cancel TTP deal, hence, they expect the yuan to trade above the 7.1 a dollar in 2017. This week, NZDCAD and EURCAD top my list

NZDCAD

In December, I mentioned the sell opportunity of this pair, since then it has dropped 339 pips to trade at 5-month low. This week, I will treat the evening star formed as the continuation of the bearish trend started in November.

Click to enlarge

Fundamentally, the Canadian economy is growing and will likely get better going forward, especially with the renewed economic growth in the US and oil production cut by the OPEC. This is projected to aid the Canadian dollar against the New Zealand dollar that currently depends on the struggling Chinese economic performance to function.

Therefore, I will be looking to sell NZDCAD for a 0.9084 target this week as long as 0.9298 resistance holds.

EURCAD

In early December, I mentioned the failure of the ECB’s quantitative easing program to boost inflation rate and help job creation in the manufacturing sector due to weak oversea orders. Since then, this pair has gained 539 pips before retracing below 1.4070 resistance after OPEC successful consensus in December.

Click to enlarge

But with the Euro-area enmeshed in low inflation rate, weak manufacturing sector and uncertainty surrounding Brexit. I expect this pair to continue its bearish move following gravestone doji formed three weeks ago and a bearish candlestick that opened and closed below 1.4070 resistance.

So this week, I will be looking to sell this pair for 1.3742 targets as long as 1.4070 resistance holds.

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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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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

7 hours ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 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.