Forex

Euro Climbs Along With Oil as Japan Stocks Decline

Published

7 years ago

December 30, 2016

Euro Climbs Along With Oil as Japan Stocks Decline

The euro spiked higher as the dollar weakened for a second day and oil advanced in thin end-of-year trading. Japanese stocks headed toward their first annual loss since 2011 while Hong Kong shares rallied.

The Bloomberg Dollar Spot Index shifted lower after reaching the highest level in more than a decade earlier this week. Oil was poised for its first annual advance in three years. The Nikkei 225 Stock Average’s gain for the year largely evaporated, while Hong Kong shares turned positive for 2016. The S&P 500 Index ended little changed Thursday following the announcement of new American sanctions against Russia over election hacks.

Trading has been thin across the globe during the last week of the year, with volumes in crude oil, equities and currencies all below average. Investors may be reallocating money as they assess asset moves in the wake of the U.S. election that took the dollar to multi-year highs, sent Treasuries tumbling and spurred a rally in American equities.

“Asian markets could see another day of mixed performances on the final trading day of the year with little inspiration for price direction,” said Jingyi Pan, a market strategist at IG Asia Pte. “The market is likely to be repositioning for the New Year with U.S. markets and that could place some pressure on markets that have underperformed lately.”

Currencies

The euro rallied as much as 1.6 percent before paring its advance to 0.4 percent and trading at $1.0527 as of 12:56 p.m. in Tokyo.
The yen fell 0.1 percent to 116.70 per dollar, erasing an earlier advance of 0.4 percent. The currency was up more than 20 percent for the year in August, but has pared that to 3.2 percent.
The Bloomberg Dollar Spot Index slipped 0.2 percent after dropping 0.5 percent Thursday, although it remains up 2.9 percent for the year.

Stocks

The MSCI Asia Pacific Index rose 0.1 percent, heading for a 2.3 percent advance for the year, its first annual gain since 2013. Pakistan was the region’s best market in 2016, jumping 45 percent, while China was set for the worst performance.
Japan’s Topix fell 0.1 percent and is poised for a 2 percent decline in 2016. The Nikkei 225 index was down 0.2 percent Friday, almost wiping out a gain for the year.
Australia’s S&P/ASX 200 Index dropped 0.6 percent, paring its annual gain to 7 percent, while New Zealand’s S&P/NZX 50 was off 0.2 percent. South Korea is closed for a holiday. The Kospi Index finished Thursday with a 3.3 percent advance for 2016.
Hong Kong’s Hang Seng Index rose 0.9 percent, wiping out its losses for the year. The Shanghai Composite Index added 0.1 percent, paring its yearly decline to 12.5 percent. The Hang Seng China Enterprises Index jumped 1 percent, trimming its annual loss to 2.8 percent.
The S&P 500 fell less than one point to 2,249.26 Thursday, the lowest close since Dec. 8. It is up 10 percent for the year. The Dow Jones Industrial Average slipped to 19,819.78, maintaining a 14 percent advance this year.
The Stoxx Europe 600 Index lost 0.4 percent after closing Wednesday at the highest level in a year. The gauge is down 1.5 percent for 2016.

Commodities

Crude futures gained 0.1 percent to $53.83 a barrel, after Thursday’s 0.5 percent decline. Prices are up about 45 percent this year. Supply cuts from OPEC and other producing nations next month are intended to stabilize the market and reduce swelling global inventories.
Gold rose for a fifth session Friday, adding 0.1 percent to $1,159.15 an ounce. The metal has rebounded 2.8 percent from an 11-month low, and is up more than 9 percent for the year.

Bonds

The yield on 10-year Treasury notes was little changed at 2.47 percent after dropping three basis points Thursday. It slid to 2.46 percent earlier in the week, the lowest since Dec. 14.
The equivalent Australian yield was down one basis point at 2.77 percent, while the yield on similar New Zealand notes dropped five basis points to 3.33 percent.

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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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Forex

BDC Operators in Abuja Face EFCC Crackdown: Chaos Erupts in Wuse Zone 4

Published

2 days ago

April 30, 2024

Samed Olukoya

The bustling streets of Wuse Zone 4 in Abuja transformed into a scene of chaos and apprehension as the Economic and Financial Crimes Commission (EFCC) conducted a surprise crackdown on Bureau De Change (BDC) operators.

The operation, which unfolded on Monday, sent shockwaves through the financial district, leaving traders and residents bewildered.

Eyewitnesses recounted scenes of pandemonium as EFCC agents descended upon the area, swiftly apprehending an undisclosed number of BDC operators.

The raid, which occurred around noon, disrupted normal trading activities and prompted fear among the local populace.

Speaking on condition of anonymity, BDC operators confirmed the raid, expressing dismay at the sudden turn of events.

“EFCC just raided the market, arresting many operators. They arrested some persons seen on the street and even pursued some persons to their offices. We are still looking for N30,000 or N50,000 to bail those arrested on Friday yet they came again today,” one trader lamented.

The crackdown comes as part of the EFCC’s concerted efforts to combat illicit financial activities and restore stability to the foreign exchange market.

Last Friday, the anti-graft agency announced the arrest of 34 suspected currency speculators for alleged involvement in foreign exchange fraud, signaling a firm stance against financial malpractice.

However, the EFCC’s actions have stirred controversy, with some questioning the efficacy of such raids in addressing underlying issues affecting the Nigerian currency.

Despite these efforts, the naira opened the week on a negative trajectory against the United States dollar, signaling potential challenges ahead.

At the official market on Monday, the naira witnessed a significant depreciation, trading at N1,419 against the dollar, representing a loss of N58 or 4.3% from the previous trading session.

The decline underscores the persistent demand for the greenback amid economic uncertainties.

Currency traders at the Zone 4 market reported heightened volatility, with the dollar trading at N1,340 per dollar, marking a notable increase from the weekend rate.

Amidst the turmoil, traders like Abubakar Taura navigated the fluctuating market, capitalizing on the volatility to secure profits.

Naira

Dollar to Naira Black Market Today, April 30th, 2024

As of April 30th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,340 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 30, 2024

Samed Olukoya

As of April 30th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,340 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 N1,310 and sell it at N1,300 on Monday, April 29th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined 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: N1,340
Selling Rate: N1,330

Forex

ABCON President Announces Blueprint for Unified Retail Forex Market

Published

3 days ago

April 29, 2024

Samed Olukoya

Naira Dollar Exchange Rate - Investors King

The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, has revealed plans to establish a unified retail end forex market structure.

This strategic initiative seeks to address volatility and streamline operations across the Bureaux De Change (BDC) sub-sector.

Gwadabe outlined the objectives of ABCON’s blueprint and the need to integrate operators from various segments of the market.

Central to the plan is the inauguration of state chapters to facilitate coordination, integration, and administration of a united market structure.

ABCON intends to extend its automation policies and platforms to all BDC operators nationwide, upgrading its Business Process Platform to enhance efficiency and transparency.

The proposed unified retail end forex market will feature a centralized, democratized, and liberalized online real-time trading platform.

This innovation aims to provide market participants with greater accessibility and transparency while fostering regulatory compliance and government oversight.

Speaking on the vision for the unified market, Gwadabe highlighted the importance of collaboration with regulatory agencies, security operatives, and government bodies to ensure a secure and thriving forex market environment.

Gwadabe reiterated the benefits of a realistic and vibrant retail forex market, aligning with the Central Bank of Nigeria’s (CBN) objectives of achieving true price discovery for the naira and balancing international obligations.

Also, the unified market structure aims to provide market intelligence reports, enhance the image of BDCs, and stimulate employment generation.

Furthermore, ABCON’s initiative aims to combat the proliferation of unlicensed forex platforms by creating a transparent and competitive market environment. By digitizing retail forex transactions and ensuring regulatory compliance, the association aims to capture revenues for the government and curb illicit financial activities.

ABCON, as a self-regulatory body representing all CBN-licensed BDCs, acknowledges the importance of maintaining integrity and adherence to regulatory standards within the sector.