Forex

Forex Weekly Outlook September 25-29

Published

7 years ago

September 24, 2017

Forex Weekly Outlook September 25-29

The US Federal Reserve left interest rate unchanged last week, but announced the commencement of its $4.5 trillion balance sheet normalization in October and revised up economic growth forecast from 2.2 percent to 2.4 percent in 2017. Stating that continuous job creation and improved economic outlook will further aid the labor market and lower jobless rate in 2018 and 2019 to 4.1 percent. However, with the strong economic projection, the US dollar failed to sustain its earlier gains after Donald Trump’s comments on North Korea at the United Nations General Assembly.

In Japan, the Bank of Japan also kept the interest rate at -0.1 percent but maintained the ongoing quantitative easing program. A decision one of the Monetary Committee disagreed with and insisted that the current policy won’t pressure prices enough to attain the central bank’s 2 percent inflation target.

This week, EURJPY, AUDUSD, CADJPY, and NZDJPY picked last week top my list.

EURJPY

The Euro-area economy continued to improve amid growing business confidence. The manufacturing sector expanded by 58.2 in September, while the services sector grew by 55.6. Another indication of a healthy economy and increased business activities.

Adding this positive economic data to Angela Merkel wins in Germany, further validate the Euro bullish position and the continuous gain is expected to attract enough buyers to boost the EURJPY towards our target.

Also, the anti-U.S. rally staged in North Korea over the weekend would weigh on Japanese Yen this week and increase political uncertainty in the country. Again, a sustained break above the 21-month price level, as shown above, affirm bullish continuation. Therefore, I remain bullish on this pair with 136.25 as the target as explained last week.

AUDUSD

The Reserve Bank of Australia’s dovish statement impacted Australian dollar’s outlook. However, the uncertainties in the U.S. are weighing on the U.S. dollar attractiveness and with the Anti-U.S. rally staged in the North Korea over the weekend, investors are likely to avoid the U.S. assets to avert volatility.

Technically, the two pin bars above the ascending trendline indicates waning upside strength, but a close below the trendline and the 20-day moving average confirmed bearish continuation. But the increasing uncertainties in the U.S., including the Obamacare repeal vote due this week, could halt progress. Therefore, while I am bearish on AUDUSD as I believe the Australian dollar is currently overpriced, I will be staying neutral to monitor geopolitical events in relation to price action.

CADJPY

The Canadian consumer prices improved in August to 1.4 percent on rising gasoline costs. Although it was below the 1.5 percent predicted by economists, it was higher than the 1.2 percent from preceding month. Yet the Canadian dollar dipped last week following Donald Trump’s comments. This is because Canada’s largest trading partner, the U.S., exert a certain effect on the economy.

This week, I will expect the gain in commodity prices and Japan’s uncertainty to boost this pair attractiveness for 93.15 resistance levels as explained last week.

NZDJPY

As stated last week, This pair closed above the 20-day moving average last week. However, a close above the 81.02 resistance level is needed to validate bullish continuation. Therefore, this week I will look to buy this pair above 81.02 resistance level and expect a sustained break to boost its demand towards 83.81 targets.

This week, I remain bullish on this pair for two reasons: Haven assets and emerging currencies would likely be the focus this week. Two, the Yen is expected to slide further amid political uncertainty.

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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

4 hours 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

5 hours 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

1 day 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.