Forex

Currency Traders on Edge as ECB Meeting Looms

Published

7 years ago

September 4, 2017

Currency Traders on Edge as ECB Meeting Looms

Foreign exchange traders face an anxious wait to see if European Central Bank policymakers will on Thursday address a euro rally that has put the currency on track for the best year against the dollar in its history.

According to a Financial Times report, an improving eurozone economy and the prospect that the ECB will scale back a bond-buying plan first introduced in 2015 to ward off deflation, has catapulted the euro almost 13 per cent higher against the US currency so far this year.

The majority of economists expect Mario Draghi, the ECB president, and the rest of the governing council to delay announcing a timetable for cutting its monthly purchase of bonds when they gather this week.

However, traders and investors in the $5.1tn daily currency market will be intensely focused on whether officials voice any anxiety about an appreciation in the common currency that threatens the competitiveness of eurozone exporters and exerts downward pressure on inflation.

Draghi has to talk about the euro, said Thanos Vamvakidis, a senior foreign exchange strategist at Bank of America Merrill Lynch. “They’re already below their [inflation] target, they have to acknowledge there are further downside risks to their inflation outlook because of the strong euro.”

Headline inflation was running at a 1.5 per cent pace in July, shy of the ECB’s target of near 2 per cent. Core inflation, which excludes volatile energy prices, came in at 1.2 per cent. The minutes of the July meeting of ECB officials revealed some unease with the vigour of the euro, which has also climbed 7 per cent against sterling and 6 per cent versus the Japanese yen in 2017.

The sensitivity of the foreign-exchange market to Draghi’s pronouncements was underlined in late August when his decision not to focus on monetary policy — and the currency — in a speech at a gathering of central bankers in Jackson Hole, Wyoming, was taken as a signal to buy the euro which last week hit the $1.20 level for the first time since early 2015.

A stellar rally for the single currency is a sharp contrast to the mood at the start of the year, when fears that the populist Marine Le Pen might capture the French presidency had some forecasting the euro would fall to parity against the dollar.

Indeed on Friday, Ewald Nowotny, a member of the governing council, cautioned against over dramatising the appreciation of the euro, which traded at close to the $1.40 mark in 2014.

However, even if Draghi seeks to temper the euro’s strength this week, some are sceptical it will have a lasting effect should a strengthening eurozone economy persuade investors to allocate more capital to the region.

“ECB verbal rhetoric may cause a correction but is unlikely to be enough to derail euro strength,” noted George Saravelos, a foreign-exchange strategist at Deutsche Bank.

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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

10 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

20 hours 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

23 hours 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.