Forex

Euro Outlook Clears as Funds Turn Bullish First Time in 3 Years

Published

7 years ago

June 19, 2017

Euro Outlook Clears as Funds Turn Bullish First Time in 3 Years

With political risks in the euro area receding, investors are becoming more confident in buying Europe’s shared currency.

CFTC data showed last week that leveraged funds increased their euro positions to “net long” in the week ended June 13 for the first time in more than three years. The euro is the top-performing Group-of-10 currency versus the dollar this year, climbing more than 6 percent and set for its biggest annual increase since 2007.

J.P. Morgan Asset Management has increased its exposure to the euro and European equity markets in the past few months, while Western Asset Global Mgmt Ltd., which has been underweight the shared currency since 2011, began buying it in December and boosted its position through April. Robeco Groep NV, which oversees 150 billion euros ($168 billion) of assets, said last week it opened a new long position in the shared currency versus the pound.

Emmanuel Macron’s victory in French parliamentary elections, an agreement between Greece and its creditors to release new loans and the defeat of the anti-establishment party Five Star Movement in the local vote in Italy are making investors more confident on the outlook for the shared currency. That compares with earlier in the year, when concerns over the rise of populism across Europe rekindled speculation of a possible breakup of the currency bloc.

“Political risks have reduced in Europe,” said Vincent Juvyns, global market strategist at J.P. Morgan Asset Management, which oversees $1.8 trillion globally. The fund prefers to express its bullish view on euro against the yen. “We had a neutral position on euro and an underweight position on European equity markets at the start of the year which we have been gradually upgrading to overweight over the last couple of months.”

The euro was at $1.1181 as of 1:50 p.m. London time. It climbed to $1.1296 on June 14, its highest level since Nov. 9.

Bullish Views

“The positioning on euro has improved significantly,” Jeroen Blokland, a money manager at Robeco Investment Solutions in Rotterdam, said last week in an interview. He said he is bullish on the euro versus the pound, while keeping a neutral stance for now against the dollar.

“There was a huge election uncertainty premium in the euro,” Andrew Cormack, a London-based money manager at Western Asset Global Mgmt Ltd, which oversees about $433 billion, said in an interview on June 15. “The long-term fair value for euro is higher than where we are at the moment.” He sees fair value for the shared currency between $1.20 and $1.30.

UBS Wealth Management has recently upgraded its euro forecasts as the political risk diminished in the euro region, while Goldman Sachs Group Inc., which abandoned its call for the euro’s parity against the dollar, forecast $1.05 as the “low point” for the pair.

The Swiss bank is more sanguine on its trajectory, expecting the pair to hit $1.14 in three months and $1.16 in a six-month period, while Goldman expects the euro to hit $1.10 at the end of 2018. “The political sky is clearing over Europe,” Thomas Flury, head of currency research at UBS WM, said in a note to clients on June 15.

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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 Rate Reaches ₦1,380 Today, May 3rd, 2024

US dollar to Nigerian Naira exchange rate as of May 3rd, 2024 at the black market stood at 1 USD to ₦1,380

Published

23 hours ago

May 3, 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 3rd, 2024 stood at 1 USD to ₦1,380.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,350 and sold it at ₦1,340 on Thursday, May 2nd, 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.

How much is dollar to naira today in black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,380
Selling Rate: ₦1,370

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.

Naira

Dollar to Naira Black Market Today, May 2nd, 2024

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

May 2, 2024

Samed Olukoya

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 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: N1,350
Selling Rate: N1,340

Forex

Yen’s Plunge Persists Despite Japan’s Late New York Trading Intervention

Published

1 day ago

May 2, 2024

Samed Olukoya

Japan’s attempts to shore up the yen faced yet another setback as the currency continued its downward spiral despite a late intervention in New York trading.

Despite efforts by Japanese authorities to stem the yen’s decline, traders remained unfazed, indicating a growing skepticism towards the efficacy of such measures.

The yen, which had initially weakened as much as 1.1% against the dollar during Asia trading, stubbornly clung to its downward trajectory, inching closer to levels seen before the suspected intervention.

Speculations ran rife among traders regarding Japan’s involvement in the currency market after witnessing abrupt fluctuations in the yen’s value during the final stretch of the US trading session.

This recent development underscores a deepening challenge for Japanese policymakers grappling with the yen’s persistent depreciation.

Despite their best efforts, the market sentiment appears to be increasingly immune to intervention tactics, casting doubts on the effectiveness of such measures in the long run.

Shoki Omori, chief desk strategist at Mizuho Securities Co., weighed in on the situation, remarking, “Japan’s finance ministry likely intervened but couldn’t break 152, where investors used to be cautious.”

He further noted, “Now that authorities are seen as having stepped in for a second time but gave the impression that they cannot stop the yen cheapening trend alone, market participants will likely feel more comfortable to short yen.”

The prevailing sentiment among traders suggests a growing consensus that Japan’s interventions may be insufficient to halt the yen’s depreciation trend.

Despite the authorities’ concerted efforts, the currency’s plunge persists, signaling a broader challenge for policymakers in navigating the complexities of the global currency market.

As the yen’s decline continues unabated, market participants remain on high alert, bracing for further volatility in the days ahead.

The inability of intervention measures to reverse the currency’s downward trajectory raises questions about the effectiveness of traditional policy tools in an increasingly interconnected and unpredictable financial landscape.

In the face of mounting challenges, Japanese authorities may find themselves compelled to explore alternative strategies to address the yen’s persistent weakness.

Whether through unconventional policy measures or coordinated efforts with global counterparts, finding a sustainable solution to stabilize the yen remains a pressing priority for policymakers amid evolving market dynamics.