Forex

Forex Weekly Outlook February 13-17

Published

7 years ago

February 12, 2017

Forex Weekly Outlook February 13-17

The US dollar rebounded mildly last week after President Trump reaffirmed his commitment to tax cuts and fiscal spending.

Although, consumer sentiment drop to 95.7 in January, from 98.5 recorded in December. The economy continued to create jobs, as evidence in the unemployment benefits that fell 12,000 to 234,000. The lowest in three-month.

But because of the uncertainty in the US, investors will be looking for clues in the Fed’s speech due on Wednesday and other economic data like consumer prices, retail sales, industrial production and capacity utilisation that will be released the same day.

In New Zealand, the Reserve Bank of New Zealand (RBNZ) left interest rate unchanged at 1.75 percent. After data showed inflation expectations has been raised from 1.7 percent to 1.9 percent because of an increase in global commodity prices and economic outlook.

However, Governor Graeme Wheeler said the continuous gain in the New Zealand dollar could undermine growth and continues to impact consumer prices. This was the reason the Kiwi dropped against the US dollar last week.

“The exchange rate remains higher than is sustainable for balanced growth and, together with low global inflation, continues to generate negative inflation in the tradable sector. A decline in the exchange rate is needed.” the Governor stated.

Generally, the global financial markets remain vague – especially with the Europe, populist uprising and Greece bailout yet to be settled. Also, it is uncertain to what extent the US president is willing to go with tax cut planned to stimulate growth and immigration reform laws. Nevertheless, Japan Prime Minister Shinzo Abe and President Donald Trump agreed to work together to facilitate trade between the two countries and create jobs.

This week NZDUSD top my list.

NZDUSD

The New Zealand dollar has lost 202 pips since peaking at 0.7374 price levels last week. The bearish engulfed candlestick formed last week, closed below the ascending channel started in September 2015. This further validated the fact that the New Zealand dollar rally has ended. A break of 0.7401 will be needed to invalidate this bearish view.

Click to enlarge

Therefore, in view of current RBNZ stand on the foreign exchange rate and the US continuous positive economic outlook. I will be looking to sell this pair below the ascending channel, 0.7253 resistance levels for 0.6989 target. However, it is nimble to monitor policy makers’ comments in the US, most importantly president Trump as his intermittent comments can invalidate this view.

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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

11 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

2 days 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.