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Forex Weekly Outlook August 28 – September 1

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One-hundred euro, from top, U
  • Forex Weekly Outlook August 28 – September 1

The three key Central Banks’ Governors, Janet Yellen, Mario Draghi and Haruhiko Kuroda on Friday agreed that weak global inflation and poor wage growth are impeding central banks from reducing monetary accommodation. Suggesting top global banks are not in a hurry to hike rates just yet.

Also, global uncertainties remain high after North Korea fired 3 short range missiles on Saturday. This is coming amid U.S. political unrest and Brexit ongoing negotiation.

Again, the Bank of Japan Governor, Haruhiko Kuroda, believed the 4 percent economic growth rate recorded by the world’s third largest economy in the second quarter is unsustainable and vowed to maintain an accommodative policy for some time.

Overall, the weak wage growth and low consumer prices remain a concern for central banks. However, growing job creation and moderate domestic spending have helped sustain growth in most nations.

This week, GBPJPY, NZDJPY, USDCAD, and GBPUSD.

GBPJPY

Since I first mentioned this pair two weeks ago, it has plunged by another 69 pips. However, the volume of trade remains low. But with the U.K consumer spending waning and economic growth stagnant at 0.3 percent, the lowest among Group seven nations. It is right to expect a further decline of the British pound —especially as the third leg of Brexit negotiation commences this week.

Forex Weekly Outlook August 28 - September 1

Technically, since this pair closed below the ascending channel two weeks ago, it has failed to break 142.42 resistance level and has remained below the 20-day moving average.

This week, I remain bearish on this pair as long as 142.42 resistance holds.

NZDJPY

As explained last week, this pair dropped 79 pips to hit our first target at 78.83. But failed to closed below key support level to validate bearish continuation after the Bank of Japan Governor, Haruhiko Kuroda said inflation rate is far from BOJ’s 2 percent target and wage growth remains low even with recent progress, therefore, he is not looking at unwinding balance sheet or raising rates until these imbalances normalized. This statement weakened the Yen outlook marginally, however, the rising global uncertainties continued to boost Yen attractiveness because of its haven status and growing economy.

NZDJPYWeekly

Therefore, this week I will look to sell this pair below 78.83 support levels that double as the ascending channel as seen above for 76.25 support, our target 2.

USDCAD

The USDCAD closed slightly below our key support (five weeks ago target 1) to reaffirm bearish continuation. Again, while the US dollar attractiveness is weighed upon by uncertainties, the Canadian dollar strength is also impacted by the growing US uncertainties, its largest trading partner.

Forex Weekly Outlook August 28 - September 1

However, the Canadian fundamentals just like the US are solid but with minimal domestic headwinds, the economy continued to create new jobs and the rising housing cost has been curbed. Making the Canadian dollar more attractive to investors than the US dollar, especially after the Bank of Canada raised rates for the first time in 7 years.

This week, I remain bearish on this pair and will look to sell below 1.2494 resistance for 1.2217 targets, our second target 5 weeks ago.

GBPUSD

The weak US dollar is aiding the British Pound, even though the U.K economic data shows the economy has started slowing down ahead of Brexit negotiation. The pound is likely to gain against the US dollar just like other major currencies are expected to surge as the Donald Trump administration looks to access the damage of Harvey continuous rain damage, estimated at $24 billion and the danger of North Korea 3 short range missiles.

Forex Weekly Outlook August 28 - September 1

While I remain bearish on this pair, I will be standing aside this week to watch price action as I expect the US dollar to dip further this week. However, on a sustained break of 1.2785 support level, I will look to sell for 1.2602 targets.

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 24th June 2024

As of June 24th, 2024, the black market rate stands at ₦1,510 per USD, reflecting ongoing fluctuations in Nigeria’s forex landscape.

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New Naira notes

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 24th, 2024 stood at 1 USD to ₦1,510.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,480 and sold it at ₦1,470 on Monday, June 18th, 2024.

This indicates a decline in the Naira exchange rate value 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: ₦1,510
  • Selling Rate: ₦1,500

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.

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Forex

Zimbabwe Mandates Partial Tax Payments in New Bullion-Backed Currency

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In a strategic move to reinforce its new bullion-backed currency, Zimbabwe will require businesses to pay a portion of their taxes in Zimbabwe Gold (ZiG), Finance Minister Mthuli Ncube announced on Wednesday.

The regulations, aimed at enhancing the stability and acceptance of the ZiG, are part of broader efforts to strengthen the nation’s fiscal and monetary framework.

“The Treasury is stepping up to complement the fiscal and monetary policy framework aimed at further anchoring the currency, exchange rate, and price stability,” Ncube stated in an emailed announcement.

Since 2020, Zimbabwe has allowed taxes to be settled in the currency businesses predominantly use. However, under the new system, specific ratios will dictate the portions of taxes that must be paid in ZiG and other foreign currencies, alongside those that can solely be settled in the new unit.

The ZiG, introduced on April 5, 2024, replaced the Zimbabwean dollar, which had depreciated by 80% against the US dollar in the official market earlier this year.

Backed by 2.5 tons of gold and $100 million in foreign currency reserves held by the central bank, the ZiG is part of Zimbabwe’s broader strategy to avoid the pitfalls that led to the collapse of its previous six currencies.

“The changes will add to a raft of measures aimed at ensuring the ZiG doesn’t suffer the fate of its predecessors,” Ncube stated.

The finance minister highlighted that the new tax policy is designed to foster greater stability in the ZiG’s value and ensure it becomes a cornerstone of Zimbabwe’s economy. The government hopes that by requiring businesses to transact in ZiG, it will boost demand for the currency, thereby strengthening its position in the market.

Additional measures to bolster the ZiG include urging miners to increase gold production and extending the currency crackdown to include more stringent regulations on companies. These efforts are geared toward ensuring a steady influx of gold to back the currency, thus reinforcing its value and credibility.

Economists have noted that the success of the ZiG will depend heavily on these regulatory measures and the government’s ability to maintain a stable economic environment. The ZiG’s introduction has already shown a “positive impact” on the economy, but sustained confidence in the currency will be crucial.

“Zimbabwe’s new tax policy is a bold step towards economic stability,” said John Mangudya, Governor of the Reserve Bank of Zimbabwe. “By ensuring that a portion of taxes are paid in ZiG, we are creating a consistent demand for the currency, which will help maintain its value and prevent the hyperinflation that plagued our previous currencies.”

The move has received a mixed reaction from the business community. While some see it as a necessary step towards stabilizing the economy, others are concerned about the immediate impact on cash flow and the complexities of adapting to the new system.

“We understand the government’s need to stabilize the currency,” said Takura Mugaga, CEO of the Zimbabwe National Chamber of Commerce. “However, we urge the authorities to consider the implementation challenges businesses might face and provide adequate support during the transition period.”

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Naira

Black Market Dollar to Naira Exchange Rate Today 18th June 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 18th, 2024 stood at 1 USD to ₦1,480.

Published

on

New Naira notes

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 18th, 2024 stood at 1 USD to ₦1,480.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,510 and sold it at ₦1,500 on Monday, June 17th, 2024.

This indicates an improvement in the Naira exchange rate value 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: ₦1,480
  • Selling Rate: ₦1,470

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.

Continue Reading
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