Forex

Forex Weekly Outlook October 23-27

Published

7 years ago

October 22, 2017

Forex Weekly Outlook October 23-27

The US dollar rebounded last week after the senate adopted 2018 fiscal budget. However, the weaker than expected inflation rate, 0.5 percent, and retail sales, 1.6 percent, remain concerns as the Federal Reserve prepares to start unwinding its balance sheet in October.

In Europe, the Brexit got a huge support from German Chancellor Angela Merkel in a move believed by most to have broken Brexit deadlock. Merkel refuted the general assertion that Brexit negotiation won’t succeed, she said “there is zero indication that Brexit talks won’t succeed and she “truly” wants an agreement rather than an “unpredictable resolution.”

This week, I will be reviewing our last week’s pick, AUDJPY, NZDUSD, AUDUSD, NZDJPY, and USDJPY.

AUDJPY

The Australian dollar gained against the Japanese Yen last week to close above the 88.17 price level.

This was because of the uncertainty surrounding the Japanese Yen prior to the October 22 election as explained in the weekly outlook. However, with Prime Minister Shinzo Abe winning the election and securing a two-thirds parliamentary majority. He now has the mandate to go ahead and revise Japan’s pacifist constitution and sustain his Abenomics.

Therefore, the strong Japanese economy and growing export amid likely surge in investment inflow this week should aid the attractiveness of the Japanese Yen against the overpriced Australian dollar. This week, I remain bearish on AUDJPY pair and will look to sell below the 88.17 support level for 86.34 targets.

NZDUSD

As explained during the week, the uncertainty surrounding the New Zealand dollar and the success of the 2018 fiscal budget with the US senate boosted the NZDUSD selloff last week.

However, until the New Zealand First coalition announces its economic growth plan, investors will continue to pull out money from the market. So this week, I remain bearish on this pair with 0.6892 as the target.

AUDUSD

AUDUSD remains on track for 0.7784 targets as explained last week. But Australian inflation rate due on Wednesday will confirm pricing and its impact on highly indebted Australian household.

Hence, I remain bearish on this pair and will look to add to my position below the 0.7784 support level.

NZDJPY

Similarly, the NZDJPY should break 78.83 support level now that Prime Minister Shinzo Abe has won convincingly.

Again, if the new coalition party failed to present a holistic economic plan in coming days amid rising food prices and weak wage growth. NZDJPY may head towards 2017 low of 75.61 support level. Therefore, our forex weekly outlook Oct 16-20 holds. This is an excerpt from last week analysis.

USDPY

Both the US and Japan’s economic fundamental are strong but the likely surge in the Japanese assets in the aftermath of the election should strengthen the Yen against the dollar and weigh on this pair outlook going forward. Therefore, I would expect a pullback from 113.49 towards 111.81 support level.

Therefore, USDJPY may touch 114.43 resistance level per adventure Shinzo Abe lose the election or win with a slight margin that gives voice to the opposition in parliament. A convincing victory would strengthen Yen against the US dollar to 111.81 support. This is an excerpt from last week analysis.

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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

2 days 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

2 days 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

4 days 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.