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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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

3 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

3 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

4 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.