Forex

Dollar Drops as Euro Bearish Bets Erase Trump-Fueled Rally

Published

7 years ago

March 13, 2017

Dollar Drops as Euro Bearish Bets Erase Trump-Fueled Rally

The dollar traded lower versus most of its Group-of-10 peers on position unwinding after the latest U.S. employment report, while the euro attempted to maintain bullish momentum fueled by a more hawkish-than-expected European Central Bank.

The Bloomberg Dollar Spot Index pared some its losses as traders across Europe noted some intra-day accounts fading the latest dip. The early drop picked up its tone from last week’s close as investors assessed that market pricing reflected three hikes by the Federal Reserve this year and left dollar-bulls looking for signs from this week’s meeting that four hikes may be a serious option for policy makers.

The euro’s outlook remains constructive even as it failed to sustain gains seen early in the day. The change in the ECB’s tone, together with its consideration to increase interest rates before the completion of its bond-buying program, have wrong footed the market. Investors have been closing euro shorts versus the dollar, the Swiss franc and the yen, sending the common currency higher. Yet the move’s steepness, with the Euro Bloomberg Index rising by the most in three months, has seen some range-seeking sellers, traders in Europe noted.

Spot action aside, euro sentiment has become less bearish in the options market as well. Risk reversals on the one-year tenor, which largely overlooks noise from political risks across the currency bloc, show that bearish bets have reversed their course since the U.S. elections in November. They still remain in favor of dollar calls as interest rate differentials matter. On the front-end, bets are close to turning euro-bullish for the first time in four months.

For now, EUR/USD may remain within 1.0645-1.0700 range as a total of EU4.8b worth of expiries roll over Monday
- The pair has shifted to a buy-the-dips approach with large demand seen at 1.0620-40 and circa 1.0600: traders
- Leveraged demand for euro is also seen in the crosses, with order books skewed toward further buying
- EUR/USD hit a fresh one-month high at 1.0714, and dropped near 1.0668, its open level for the day, after short-term names sold into the rally
EUR/CHF managed to rise above 1.0800 handle for the first time in three months as investors closed shorts, in spot and options markets alike
- Shift in ECB tone has eased concerns over a possible move toward the lower band of the SNB’s unofficial 1.05-1.10 corridor that prompted the franc-long positions in the first place
- This could mean a lower need for interventions by the central bank that convenes Thursday; no rate change is expected while no press conference is scheduled
The pound traded higher versus most of its G-10 peers; cable managed to gain as much as 0.6% on the back of model accounts supporting it, after the pair managed to hold support from its post-October flash crash trendline
- Interbank names look to fade any further pound strength amid May’s attempt to silence her fellow party rebellion as she tries to win the power to trigger Article 50. With the market split over the effect of the actual Brexit trigger on the pound, risk reward is seen by some investors in offering rallies in pound crosses: traders
Aussie outperforms, gains versus all G-10 peers; it tests the 38.2% Fibonacci retracement of its drop since Feb. 23; leveraged demand in AUD/NZD also boosts the currency
Yen higher a second day; support from the dollar comes from nearby 55-DMA at 114.27
Expiries Monday in kiwi at 0.6950 (NZ$353m) and 0.7000 (NZ$371m) may anchor price action: DTCC
Some information comes from FX traders familiar with the transactions who asked not to be identified because they are not authorized to speak publicly

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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

1 day 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

1 day 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

2 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.