Connect with us

Forex

Forex Weekly Outlook November 20-24

Published

on

One-hundred euro, from top, U
  • Forex Weekly Outlook November 20-24

The US economy continued to churn out strong economic fundamentals but not enough to sustain dollar attractiveness amid rising tax concern. Retail sales rose 0.2 percent in October,  indicating consumer spending remains healthy even with less desirable wage growth.

In the U.K, the economy has started showing signs of weakness following Prime Minister Theresa May failure to reach an agreement with the European Union. Retail sales dropped 0.3 percent year-on-year in October, while wage growth edge higher slightly to 2.2 percent in the third quarter. Still, this is below the 3 percent inflation rate that is eroding buying power.

In the Euro-area, the economy grew at 0.6 percent with consumer prices remaining steady at 1.4
percent, same as previous numbers.

This week, we will be reviewing six currency pairs as listed below;

AUDUSD

Australia created fewer jobs than expected in October but unemployment rate improved to 5.4 percent. Meaning, drop in the participation rate was what plunged unemployment rate to more than 4-year low and not state of the economy.

As previously stated, the Australian economy is struggling with weak wage growth and low inflation rate, this we expect to continue into 2018. Especially, with retailers cutting prices to boost demand and housing debt rising.AUDUSDDaily

Therefore, this week we remain bearish on AUDUSD and expect the success of House Republicans on tax reform to further aid AUDUSD towards our third target at 0.7505.

NZDUSD

Last week, data shows New Zealand’s producer price index, both input and output, rose less than expected in the third quarter. Suggesting that price pressures are still low and likely to impede the Reserve Bank of New Zealand from raising rates in 2018.

Even though inflation rate was better than expected in the third quarter, 1.9 percent year-on-year. It was just above the mid of 1-3 percent projected by the apex bank. This is partly due to the decline in global dairy prices and weak exports.Forex Weekly Outlook November 20-24

Again, while this pair rebounded after hitting our first target at 0.6892, the weak economic outlook due to change of government and poor economic fundamentals continued to hurt the Kiwi attractiveness against most currencies. Therefore, after establishing a bearish evening star below the ascending line, as shown above, the NZDUSD has reaffirmed bearish continuation. This week, we remain bearish on NZDUSD with 0.6716 (target 2) as the target.

NZDJPY

The weak producer prices aided our NZDJPY projection last week but after NZDJPY hit our second target at 76.25 the pair slightly rebounded to close above that support level.  While we are bearish on NZDJPY, we need a sustained break of 76.25 support level to validate bearish continuation for 74.47 targets.

Forex Weekly Outlook November 20-24

AUDJPY

As stated in the previous analysis, the Australian dollar is overpriced but the weak economic data and uncertainty surrounding the economic growth ahead of China’s credit control and steel reduction policies are key factors hurting Aussie dollar attractiveness against G10 currencies.Forex Weekly Outlook November 20-24After closing below our first target at 86.34 and below the ascending trendline, the AUDJPY affirmed bearish continuation towards 82.20 as shown above but a sustained break of 84.74 is needed to further validate downside movement. This week, we will be looking to add to our position below 84.74 support.

AUDNZD

While this pair rebounded last week, we do not see its sustainability going forward. Therefore, we attributed the upsurge in price to the weak producer prices data released on Friday and expect the market to attain a ‘balance’ next week. Especially, with the weak Australian economic outlook and the 1.1111 resistance level that doubled as 20-day moving average still intact.Forex Weekly Outlook November 20-24

Hence, we remain bearish on AUDNZD and expect a close below the ascending trendline and 1.1000 support level to reinforce sellers’ interest and push price towards 1.0922 as previously stated.

 GBPAUD

Since we first mentioned this pair buy opportunity in September, it has gained significantly above our 1.6539 targets. However, after readjusting our psychological levels to accommodate the Bank of England’s new monetary policy stance, we think GBPAUD is ready for the upside for two reasons. One, while the Australian dollar is overpriced, Pound Sterling is undervalued and has suffered tremendously because of growing uncertainties surrounding Brexit. Two, the U.K. economic numbers remain positive and resilient even with the growing political and economic issues in the nation, while the reverse is the case for Australian economic numbers.

Similarly, between September 15 and November 17, this pair has gained 1080 pips to close at 1.7466 last week. That is a significant move for the Pound Sterling with all the economic uncertainties. Also, we believe a close above the 1.7181 validated sustainable bullish move and as long as that level holds, we are bullish on GBPAUD with 1.7652 as the target.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Naira

Daily Naira Exchange Rates; Friday, March 5, 2021

Published

on

naira

Naira Exchange Rates; Friday, March 5, 2021

Naira remained pressured across key foreign exchange markets on Friday, March 5, 2021 as scarcity persists. The local currency traded at N480 to a United States Dollar at the parallel market on Friday morning while it exchanged at N675 to a British Pound and N582 to the European common currency.

Daily Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
05/03/2021 475/480 670/675 575/582 60/68 385/395 382/300
04/03/2021 475/480 665/672 574/580 60/68 385/395 382/300
03/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
02/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
01/03/2021 475/482 662/672 575/583 60/68 385/395 382/300
26/02/2021 475/482 660/672 575/583 60/68 385/395 382/300
25/02/2021 475/480 660/670 572/580 60/68 385/395 282/300
24/02/2021 475/480 655/670 570/580 60/68 385/395 282/300
23/02/2021 475/480 655/665 575/582 60/68 385/395 282/300
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
05/03/2021 470/480 662/672 570/580
04/03/2021 470/480 662/672 570/580
03/03/2021 470/480 662/670 573/580
02/03/2021 470/480 660/669 573/580
01/03/2021 470/480 660/669 574/580
26/02/2021 470/480 660/669 574/580
25/02/2021 470/480 658/665 574/580
24/02/2021 470/478 654/660 570/578
23/02/2021 470/478 654/660 570/578
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

Continue Reading

Naira

Naira Hits Record Low of N427 Against the United States Dollar on I&E FX Window

Published

on

Nigeria 1000 notes

Naira Exchanges at N427 Against the United States Dollar on I&E FX Window

The Nigerian Naira plunged to as low as N427.45 against the United States Dollar on the Investors and Exporters Foreign Exchange Window on Thursday, March 4, 2021.

The local currency pulled back to N406.50 a US Dollar but opened lower at N412.50 on Friday morning.

Investors traded $66.99 million during the trading hours of Thursday.

At the black market section of the foreign exchange, Naira traded at N480 against the United States Dollar while the British Pound was exchanged at N673.

The Euro common currency remained unchanged at N580, the same rate it exchanged on Monday.

Despite the surge in the oil price to N67 per barrel and a series of forex policies, the Central Bank of Nigeria continues to struggle with low dollar liquidity across the board.

Nigeria’s foreign reserves declined by about $1 billion in one month as Africa’s largest economy struggles with the weak fiscal buffer necessary to mitigate COVID-19 impacts and deepen productivity.

It would be recalled that the Central Bank of Nigeria adjusted its diaspora foreign remittance policy to curb rising foreign exchange rates and put an end to black market transactions hurting the nation’s local currency value.

However, since the new policy was enacted in November 2020, forex scarcity remained pervasive with diaspora remittance inflow expected to decline by $2 billion in 2020.

Continue Reading

Naira

Daily Naira Exchange Rates; Thursday, March 4, 2021

Published

on

interbank

Naira Exchange Rates; Thursday, March 4, 2021

Naira exchanged lower against global counterparts on Thursday morning as scarcity persists across forex segments. Naira traded at N480 to United States Dollar on the black market while to a British Pound it sold for N672 as shown below.

Daily Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
04/03/2021 475/480 665/672 574/580 60/68 385/395 382/300
03/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
02/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
01/03/2021 475/482 662/672 575/583 60/68 385/395 382/300
26/02/2021 475/482 660/672 575/583 60/68 385/395 382/300
25/02/2021 475/480 660/670 572/580 60/68 385/395 282/300
24/02/2021 475/480 655/670 570/580 60/68 385/395 282/300
23/02/2021 475/480 655/665 575/582 60/68 385/395 282/300
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
04/03/2021 470/480 662/672 570/580
03/03/2021 470/480 662/670 573/580
02/03/2021 470/480 660/669 573/580
01/03/2021 470/480 660/669 574/580
26/02/2021 470/480 660/669 574/580
25/02/2021 470/480 658/665 574/580
24/02/2021 470/478 654/660 570/578
23/02/2021 470/478 654/660 570/578
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

Continue Reading

Trending