Notable Residents – Ardud http://ardud.ro/ Sat, 18 Sep 2021 13:00:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ardud.ro/wp-content/uploads/2021/05/default1-150x150.png Notable Residents – Ardud http://ardud.ro/ 32 32 AbokiFX Suspends Exchange Rate Updates; Consequences of the repression of the CBN https://ardud.ro/abokifx-suspends-exchange-rate-updates-consequences-of-the-repression-of-the-cbn/ https://ardud.ro/abokifx-suspends-exchange-rate-updates-consequences-of-the-repression-of-the-cbn/#respond Sat, 18 Sep 2021 12:49:22 +0000 https://ardud.ro/abokifx-suspends-exchange-rate-updates-consequences-of-the-repression-of-the-cbn/ Saturday, September 18, 2021 10:58 a.m. / by The Will / Header Image Credit: Aboki FX AbokiFX, the website that quotes daily exchange rates against the naira, announced the temporary suspension of updates on its platform following serious allegations of currency manipulation, speculation and illegal transactions on the forex brought against him by the Central […]]]>

Saturday, September 18, 2021 10:58 a.m. / by The Will / Header Image Credit: Aboki FX

AbokiFX, the website that quotes daily exchange rates against the naira, announced the temporary suspension of updates on its platform following serious allegations of currency manipulation, speculation and illegal transactions on the forex brought against him by the Central Bank of Nigeria, CBN.

Godwin Emefiele, governor of the CBN, had previously promised to sue founder Oniwinde Olusegun Adedotun after the regulator opened an investigation into Oniwinde’s company and activities and blocked bank accounts linked to them.

Emefiele alleged that Oniwinde and his company maintain 25 bank accounts in eight banks which are filled with money from his alleged speculative activities.

According to Emefiele, “the founder of AbokiFX is an illegal dealer with tens of millions invested in several Nigerian companies,” but pledged to find him in his UK home and prosecute him.

AbokiFX released the statement below following the CBN governor’s statement after the MPC decision briefings.

AbokiFX management decision

AbokiFX made the decision today, September 17, 2021, to temporarily suspend pricing updates across all of our platforms, until we get better clarity. The final prices were published tonight but the news section abokiFX and the Crypto prices section will still be active.

Who we are

AbokiFX was established in 2014 as a research and information service company, to conduct market research and collect data on parallel market rates.

We also wanted to bring a certain transparency around the parallel market with the availability of information technologies.

AbokiFX only provides benchmark information on parallel rates that helps guide our users in nearly 200 countries around the world.

abokiFX DOES NOT TRADE FX, which we have always maintained in our emails and social media platforms.

We do not trade currencies, nor do we have the power to manipulate rates because we DO NOT CREATE rates.

We are the only entity in Nigeria to offer a full set of parallel rates, since our inception in 2014 when the exchange rate was trading at N 166 to $ 1.

We gathered data for years before we started publishing, as we realized that the demand for our historical data was increasing.

For most of the users of our platforms, we are just a parallel pricing advice, but for many institutions, ranging from IVY League universities to global companies and research centers, we are a key source of data. , especially historical data (almost a decade of parallel rate data).

Companies use our data for their internal and external audits as well as for planning and budgeting.

We ONLY post what we get on the streets of Lagos, hence the term, Lagos Parallel Rates. The resulting rates are carefully collated, examined, and an average rate is published from the data pool. This explains our three daily updates – * Morning, ** Noon, *** Evening.

Sometimes rates come late, but we have to wait for all rates before releasing them, to avoid rate volatility. Page 2 of 2 None of our data source providers

None of our data source providers know who we are or what their rates are for. This is to avoid any manipulation of rates.

It is a daily routine for our staff to go to the market to collect the rates, as all BDCs across the country have their rates clearly displayed on their rate charts and the parallel market rate brokers freely provide information.

All we do is put all of this information together and post it daily across all of our platforms.

2017 vs 2021 replay

In 2017 Nigeria experienced a currency crisis and the Naira depreciated to over N500 / $ 1. abokiFX has been accused of manipulating parallel market rates. Once the cash was injected, the Naira appreciated and we released the appreciation, which is basically what we are doing. 2021 saw a similar scenario with the depreciation of the naira and we published what was given to us which has led some to believe that we are manipulating the market. However, no one can complain that our prices deviate by +/- 2% from the parallel market prices when they frequent the dealers in the market. If we don’t create the tariffs, then how can we control the tariffs. Our only sources of revenue have been our API and ad sales.

Allegations against our director

All the allegations against our manager have yet to be confirmed, but at abokiFX we do NOT trade FX or manipulate parallel market rates. Apart from the media allegation, we have not received any communication from any government agency and our accounts are not closed as stated in the media.

Go forward

abokiFX is fully functional BUT we will not be posting any form of pricing on our platforms at this time. We sincerely hope that this suspension will lead to the appreciation of the Naira from next week. With our decision to temporarily suspend online pricing publication, we recognize that the visibility of parallel pricing information will be limited, which will impact decision making for many.

Credit

The post office AbokiFX Suspends Exchange Rate Updates Following CBN Crackdown first appeared in thewillNigeria.conSeptember 17, 2021.

Proshare Nigeria Pvt.  Ltd.

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  14. Naira depreciated in the parallel market by -1.02% on WoW at N515.80 vs. N510.60
  15. NAFEX rate depreciated by -0.003% WoW to N411.17 from N411.16
  16. A sharp drop in the CBN’s currency supply
  17. Gross official reserves increased by $ 79 million to $ 33.4 billion in July 2021
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  20. Examining the Impact of Exchange Rate Volatility in Nigeria
Proshare Nigeria Pvt.  Ltd.
Proshare Nigeria Pvt.  Ltd.


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EMERGING MARKETS – Brazilian Real leads Latam FX lower ahead of central bank meeting https://ardud.ro/emerging-markets-brazilian-real-leads-latam-fx-lower-ahead-of-central-bank-meeting/ https://ardud.ro/emerging-markets-brazilian-real-leads-latam-fx-lower-ahead-of-central-bank-meeting/#respond Fri, 17 Sep 2021 19:09:11 +0000 https://ardud.ro/emerging-markets-brazilian-real-leads-latam-fx-lower-ahead-of-central-bank-meeting/ * Comments from head of Brazil’s cenbank worry trader * Chilean markets closed for holidays on Friday * Brazil’s Vale declares exceptional first half dividend (adds comments, updates prices throughout) By Susan Mathew and Shreyashi Sanyal Sept. 17 (Reuters) Latin American currencies on Friday with all eyes on the central bank policy meeting next week, […]]]>

* Comments from head of Brazil’s cenbank worry trader * Chilean markets closed for holidays on Friday * Brazil’s Vale declares exceptional first half dividend (adds comments, updates prices throughout) By Susan Mathew and Shreyashi Sanyal Sept. 17 (Reuters) Latin American currencies on Friday with all eyes on the central bank policy meeting next week, as mining major Vale declares an exceptional dividend of $ 7.6 billion in the first semester. The real is down about 0.7% for the week, the worst performance among regional peers. Next week, the central bank is expected to raise interest rates by 100 basis points as inflation rises. But traders are cautious after central bank chief Roberto Campos Neto said earlier this week he would not change his plans with every indicator showing high inflationary pressures, signaling he could hint at a ceiling for the current tightening cycle. “Neto’s comments seem to indicate that there is no point in fighting inflation with more rate hikes,” said Juan Perez, a senior currency traded at Tempus Consulting. “It scares traders because the idea was to bet on a tightening, but the official’s lack of concern makes many think they are going to stop.” Political sentiment also weighed on the real as investors feared President Jair Bolsonaro’s populist policies as his popularity waned ahead of next year’s election. Bolsonaro on Thursday signed a decree to increase taxes on financial transactions – levied on credit, foreign exchange transactions, insurance transactions or bonds or securities – for three months to pay for the so-called protection program against the Auxílio Brasil pandemic. The Mexican peso held steady, while the Colombian peso fell 0.5% on falling oil prices. “Many Latin American countries could potentially experience a strong post-COVID rebound, but there are risks in their financial systems as well,” said John Lau, head of Asian equities at SEI. “Some, like Brazil, also have higher political risks. From a valuation perspective, they are not excessive as most have fallen behind in broader emerging markets so far this year.” Markets in Chile have been closed for a holiday. In Argentina, the benchmark 2035 dollar-denominated sovereign bond fell slightly. Argentina’s center-left President Alberto Fernandez called for unity on Thursday after a rebellion of far-left ministers threatened to shatter the ruling coalition following a deadly defeat in a primary election in mid-term. Among stocks, iron ore miner Vale fell 1.3% to its lowest level in seven months, following a 7% drop in steel ingredient prices. The company on Thursday evening declared a dividend of 40.2 billion reals, or 8.11 reais ($ 1.54) per share, its biggest payout since the miner’s dam collapsed in 2019. The Bovespa stock index de Sao Paulo fell 1.8%, extending losses to a fourth consecutive session. It should underperform its Latam peers for the week, down 2.1%. Salvadoran bonds are seen after falling in last session amid fears the country will fail to meet a potential $ 1 billion loan deal with the International Monetary Fund and face negative credit implications from its use bitcoin. Main Latin American stock indexes and currencies at 19:00 GMT: Stock market indices Last daily change in% MSCI Emerging Markets 1277.56 0.06 MSCI LatAm 2334.21 -1.95 Brazil Bovespa 111 747.44 -1.8 Mexico CPI 51480 , 55 -1.36 Chile IPSA 4465.47 0.71 Argentina MerVal 78859.09 -1.102 Colombia – COLCAP 1319.85 0.27 Currency Last daily change in% Brazilian real 5.2835 -0.37 Mexican peso 20.0082 -0.39 Chilean peso 782.4 0.00 Colombian peso 3825.03 -0.27 Peruvian sol 4.1054 -0.32 Argentine peso (interbank) 98.3500 -0.03 Argentine peso (parallel) 182 2, 20 (Report by Susan Mathew and Shreyashi Sanyal in Bangalore; Editing by Dan Grebler, William Maclean)


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CBN investigates AbokiFX founder Oniwinde Adedotun faces up to 2 years in jail amid rising exchange rate Nigeria news https://ardud.ro/cbn-investigates-abokifx-founder-oniwinde-adedotun-faces-up-to-2-years-in-jail-amid-rising-exchange-rate-nigeria-news/ https://ardud.ro/cbn-investigates-abokifx-founder-oniwinde-adedotun-faces-up-to-2-years-in-jail-amid-rising-exchange-rate-nigeria-news/#respond Fri, 17 Sep 2021 11:03:44 +0000 https://ardud.ro/cbn-investigates-abokifx-founder-oniwinde-adedotun-faces-up-to-2-years-in-jail-amid-rising-exchange-rate-nigeria-news/ Central Bank of Nigeria investigates abokiFX founder Oniwinde Adedotun as umbrella bank clamps down on operation Adedotun faces two years in jail for abokiFX’s exchange rate report, which violates Nigeria’s laws Founder of digital forex tracker also under investigation for alleged manipulation of black market exchange rates Oniwinde Adedotun, the founder of abokiFX, faces two […]]]>
  • Central Bank of Nigeria investigates abokiFX founder Oniwinde Adedotun as umbrella bank clamps down on operation
  • Adedotun faces two years in jail for abokiFX’s exchange rate report, which violates Nigeria’s laws
  • Founder of digital forex tracker also under investigation for alleged manipulation of black market exchange rates

Oniwinde Adedotun, the founder of abokiFX, faces two years in prison and a fine over allegations that his digital media violated the 2004 National Intelligence Committee Act.

Addotun’s abokiFX tracks exchange rates on Nigeria’s black market, informing Nigerians and foreigners interested in the parallel market of exchange rate movements.

What the law says, how abokiFX violates it

But this is against the Foreign Exchange Reporting Law, which states that any person or organization reporting exchange rates other than those of the bank has committed an offense.

Read also

Three Banks Died In Nigeria Due To Alleged Fraud By CEO And Chairman

AbokiFX founder Oniwinde Adedotun faces two years in prison for reporting exchange rates via abokiFX under investigation
Governor of the Central Bank of Nigeria, Godwin Emefiele. Photo: Chris J. Ratcliffe / Bloomberg
Source: Getty Images

It was collected from article 11 of the 2004 law on the National Intelligence Committee., that any person, association of natural persons or public and private legal person publishing or publishing exchange and interest rates other than those of the bank will pay the following;

In the case of an individual, the fine of 100,000 naira will be imposed, along with two years’ imprisonment, separately, or will incur both penalties.

While a company will be fined 500,000 N and its certificate of registration or constitution will be revoked.

Alleged manipulation of forex, illegal foreign exchange transactions

Besides abokiFX’s violation of the Foreign Exchange Rate Reporting Act, Adedotun has also been accused of manipulating black market exchange rates which have been rising in recent times.

Since the Central Bank of Nigeria banned Bureau de Change operators from receiving foreign exchange from commercial banks to support their operations, abokiFX reported that the value of the naira has increasingly weakened against foreign currencies.

Read also

One pound hits N745 as CBN ban on Bureau De Change operators affects availability

Currently, abokiFX reported that $ 1 to a naira is N570, the exchange of one UK pound for N770, while one euro is trading against N655 on the parallel market.

In addition, the CBN requested details of seven accounts owned by Adedotun and abokiFX, to investigate transactions involving them.

CBN to produce digital naira in Nigeria

The financial regulator has been pushing for a digital currency, e-naira, for the country since it banned cryptocurrency trading in Nigeria earlier this year.

The CBN has banned cryptocurrency exchanges from operating in Nigeria and banned banks from doing business with them.

The Nigerian e-naira is slated for October, the country’s Independence Day month, but it will not be an interest-bearing asset.

Source: Legit


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FOREX-Dollar index climbs after surprise rebound in US retail sales https://ardud.ro/forex-dollar-index-climbs-after-surprise-rebound-in-us-retail-sales/ https://ardud.ro/forex-dollar-index-climbs-after-surprise-rebound-in-us-retail-sales/#respond Thu, 16 Sep 2021 19:54:59 +0000 https://ardud.ro/forex-dollar-index-climbs-after-surprise-rebound-in-us-retail-sales/ Band Caroline Valetkevitch NEW YORK, September 16 (Reuters) – The dollar increased and reached its highest level in almost three weeks against a basket of currencies on Thursday after data showed US retail sales unexpectedly surged in August, allaying concerns about a sharp slowdown in economic growth. The dollar index = USD, which measures the […]]]>

Band Caroline Valetkevitch

NEW YORK, September 16 (Reuters)The dollar increased and reached its highest level in almost three weeks against a basket of currencies on Thursday after data showed US retail sales unexpectedly surged in August, allaying concerns about a sharp slowdown in economic growth.

The dollar index = USD, which measures the US currency against six others, added to the gains following the report and rose 0.5% for the last time to 92,866. It reached its highest level since August 27.

Retail sales rose 0.7% last month, boosted in part by back-to-school purchases and child tax credit payments, while data for July was revised down.

A separate report showed that initial claims for unemployment benefits in the United States increased by 20,000 to seasonally adjusted 332,000 for the week ending September 11. Economists had forecast 330,000 claims for the last week.

“If you look at the retail sales figure, it’s pretty constructive even with the revisions, so we see the dollar benefit, especially against funding currencies like the euro, swiss and yen,” he said. North American official Bipan Rai said. forex strategy for CIBC Capital Markets in Toronto.

The news could bolster investor expectations for next week’s Federal Reserve policy meeting and how soon the U.S. central bank will start cutting stimulus.

“It’s as if lingering concerns about the underlying economy… which have been wiped out a bit. As we head to the Fed next week, the evidence supports the idea that we are going to get a signal to cut back. of the Fed at the meeting, “he said.

On Tuesday, the dollar index fell to a one-week low at 92.321 after a weaker-than-expected inflation report. Its low for the month was 91,941 on September 3 when wage data disappointed.

Investors are seeking clarification on the outlook for both lower rates and interest rates at the Fed’s two-day policy meeting that ends next Wednesday.

The tapering typically lifts the dollar as it suggests the Fed is one more step towards tightening monetary policy.

It also means that the central bank will buy less debt assets, thus reducing the amount of dollars in circulation, which in turn increases the value of the currency.

The dollar also gained 0.3% at 109.70 yen JPY = EBS, after slipping to a six-week low of 109.110 in the previous session.

The euro EUR = EBSwas 0.4% below $ 1.1766.

The Swiss franc also fell against the dollar and was the last at 0.9263 francs to the dollar. CHF = EBS

Elsewhere, the Australian dollar AUD = D3 was broken down 0.5% to $ 0.7296.

Earlier, data showed the country’s unemployment rate unexpectedly fell to 4.5%, but the statistics office said the change reflected a drop in the participation rate rather than a strengthening in the labor market. .

In cryptocurrencies, bitcoin movements have been relatively moderate. It was down 0.9% for the last time at $ 47,711 BTC = BTSP. Ether changed hands at $ 3,589 ETH = BTSP, down 0.7%.

AMC Entertainment Holdings Inc AMC.N Boss Adam Aron said in a tweet this week that the movie chain will accept ether, bitcoin cash and litecoin alongside bitcoin for the purchase of tickets.

=================================================== ======

Price of currency offers at 3:21 p.m. (1921 GMT)

The description

RIC

Last

US Close previous session

PCT change

Percentage change for the current year

High offer

Low offer

Dollar index

= USD

92.8660

92.4620

+ 0.45%

3.206%

+92.9650

+92.4570

Euro dollar

EUR = EBS

$ 1.1766

$ 1.1816

-0.42%

-3.70%

+ $ 1.1820

+1,1751 $

Dollar / Yen

JPY = EBS

109.7000

109.3800

+ 0.31%

+ 6.19%

+109.8250

+109.2100

Euro / yen

EURJPY =

129.06

129.20

-0.11%

+1.69%

+129.3400

+128.6100

Dollar / Switzerland

CHF = EBS

0.9263

0.9197

+ 0.73%

+ 4.72%

+0.9271

+0.9195

Pound sterling / dollar

GBP = D3

$ 1.3793

$ 1.3843

-0.33%

+ 1.00%

+1.3852 $

+1.3765 $

Canadian dollar

CAD = D3

1.2675

1.2624

+ 0.41%

-0.46%

+1.2699

+1.2618

Australia / Dollar

AUD = D3

$ 0.7296

$ 0.7334

-0.50%

-5.14%

+ $ 0.7345

+ $ 0.7274

Euro / Switzerland

EURCHF =

1.0898

1.0865

+ 0.30%

+ 0.84%

+1.0901

+1.0858

Euro / Pound

EURGBP =

0.8528

0.8537

-0.11%

-4.58%

+0.8547

+0.8501

New Zealand dollar / Dollar

NZD = D3

$ 0.7077

$ 0.7110

-0.45%

-1.44%

+ $ 0.7140

+ $ 0.7060

Dollar / Norway

NOK = D3

8.6195

8.5755

+ 0.66%

+ 0.52%

+8.6470

+8.5725

Euro / Norway

EURNOK =

10.1436

10.1265

+ 0.17%

-3.09%

+10.1720

+10.1130

Dollar / Sweden

SEK =

8.6237

8.5694

+ 0.10%

+ 5.21%

+8.6512

+8.5700

Euro / Sweden

EURSEK =

10.1482

10.1380

+ 0.10%

+ 0.71%

+10.1710

+10.1360

Global exchange rateshttps://tmsnrt.rs/2RBWI5E

(Reporting by Caroline Valetkevitch Additional reporting by Ritvik Carvalho in London and Kevin Buckland in Tokyo Editing by Alexander Smith, Mark Potter and Jonathan Oatis)

((caroline.valetkevitch@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Libor removal will not affect exchange rates – BSP https://ardud.ro/libor-removal-will-not-affect-exchange-rates-bsp/ https://ardud.ro/libor-removal-will-not-affect-exchange-rates-bsp/#respond Thu, 16 Sep 2021 13:13:40 +0000 https://ardud.ro/libor-removal-will-not-affect-exchange-rates-bsp/ The Philippine peso-US dollar exchange rate would not be affected by the removal of the London Interbank Offered Rate (Libor), which is a benchmark interest rate used in a wide variety of financial transactions, the Bangko Sentral ng Pilipinas ( BSP) insured Thursday. “The stop of the Libor will not affect the US dollar-peso rate, […]]]>

The Philippine peso-US dollar exchange rate would not be affected by the removal of the London Interbank Offered Rate (Libor), which is a benchmark interest rate used in a wide variety of financial transactions, the Bangko Sentral ng Pilipinas ( BSP) insured Thursday.

“The stop of the Libor will not affect the US dollar-peso rate, because the peso will continue to be determined by the market and based on the transactions actually made in the US dollar-peso spot market,” the governor stressed. of the BSP, Benjamin Diokno, during a press conference. Thursday.

He also said that the central bank’s benchmark rates, which include the exchange rates of a number of currencies, will continue to be calculated using the current market exchange rate.

The peso-dollar exchange rate now hovers between P 49 and $ 1.

“Since the Libor is based on estimates submitted by panel banks, rather than actual transactions, it is possible that the rate is being manipulated,” he said. Indeed, allegations of rate manipulation first surfaced in 2005, when the panel banks allegedly collaborated and submitted intentionally low rates in order to keep the Libor at favorable levels.

Bangko Sentral chief noted that on March 5, 2021, the UK regulator announced the schedule to stop all Libor benchmarks on March 5, 2021. The one-week and two-month US dollar Libor, as well than most other Libor currencies, will be phased out at the end of this year.

All existing Libor tenors in any currency will no longer be considered representative of the market and economic reality by the end of June 2023.

In the Philippines, Diokno pointed out, banks use Libor as the benchmark rate for various transactions denominated in foreign currencies, such as business and consumer loans, as well as bank deposits.

“The inability to establish replacement rates for outstanding LIBOR benchmark contracts when LIBOR ceases to render financial institutions and their counterparties or clients unable to reassess and value their financial exposures,” he said. he warned.

According to the memorandum, Bangko Sentral expects banks to put in place feasible transition plans to ensure overall operational readiness for the adoption of alternative benchmarks.


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FOREX-Dollar Maintains Recent Ranges After Weak US Inflation https://ardud.ro/forex-dollar-maintains-recent-ranges-after-weak-us-inflation/ https://ardud.ro/forex-dollar-maintains-recent-ranges-after-weak-us-inflation/#respond Wed, 15 Sep 2021 08:39:00 +0000 https://ardud.ro/forex-dollar-maintains-recent-ranges-after-weak-us-inflation/ * Chart: global exchange rates tmsnrt.rs/2RBWI5E LONDON, Sept. 15 (Reuters) – The dollar held in recent ranges relative to its peers on Wednesday after weaker-than-expected U.S. inflation figures tempered immediate expectations of the Federal Reserve’s cut while that disappointing Chinese data weighed on the yuan and the aussie. The dollar index stood at 92.536, around […]]]>

* Chart: global exchange rates tmsnrt.rs/2RBWI5E

LONDON, Sept. 15 (Reuters) – The dollar held in recent ranges relative to its peers on Wednesday after weaker-than-expected U.S. inflation figures tempered immediate expectations of the Federal Reserve’s cut while that disappointing Chinese data weighed on the yuan and the aussie.

The dollar index stood at 92.536, around 0.2% lower on Tuesday, when it fell on inflation data to recover only on safe-haven demand as stocks were slipping on Wall Street.

The index has hovered between 92.3 and 92.9 over the past week, with several Fed officials suggesting that the US central bank may reduce its debt purchases by the end of the year, even after a much lower than expected salary report earlier this month.

While high inflation kept the pressure on policymakers, overnight data showed that the U.S. consumer price index, excluding the volatile components of food and energy , had risen only 0.1% last month.

The Federal Open Market Committee (FOMC) is holding its monetary policy meeting next week, with investors keen to know if a cut announcement will be made.

Tapering tends to benefit the dollar as it suggests that the Fed is one more step towards tightening monetary policy. It also means that the central bank will buy less debt assets, thus reducing the number of dollars in circulation.

“In the end, the inflation numbers provided no answer to the market dilemma about when to cut the Fed,” Francesco Pesole, G10 FX strategist at ING said in a note to clients.

“The rapid reversal of dollar weakness, however, might suggest that a brief delay in announcing the cut (i.e. in November instead of September) may not be enough to generate a trend. sustained decline in the dollar. After all, the dollar has recently been supported by the narrative of a potential combination of monetary tightening and slower growth over the medium term: it’s no surprise that a marginal fall in inflation has contributed very little to allay those concerns.

One euro bought $ 1.1816 on Wednesday, mostly flat from the previous session.

European Central Bank Chief Economist Philip Lane speaks at the IMFS webinar later today.

The dollar slipped slightly to a 3-week low of 109.44 yen, remaining near the center of the last two-month trading range.

The Commonwealth Bank of Australia is more bullish on the outlook for the dollar, predicting that accelerating US employment costs will keep consumer prices high.

“Inflation above target will prove to be more persistent than the FOMC expects,” CBA strategist Carol Kong wrote in a report.

“The implication is that the FOMC will likely have to raise the fund rate more than what the markets are currently expecting, which could support the USD on the trail.”

Meanwhile, the yuan and Australian dollar fell after Chinese data showed growth in factory and retail sales slowed more sharply than expected last month.

Adding to China’s wider concerns in financial markets is a press report that ailing real estate developer China Evergrande Group will not be able to pay interest on its debt next week.

The yuan extended its decline for the day to 6.4433 yuan to the dollar before trading about 0.1% lower at 6.4410, threatening to break a five-day streak of gains.

The Aussie fell to $ 0.73015 for the first time in more than two weeks after data from China, but recovered to hardly change at $ 0.7320.

Reporting by Ritvik Carvalho; Editing by Toby Chopra


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Wall Street Journal by Cointelegraph https://ardud.ro/wall-street-journal-by-cointelegraph/ https://ardud.ro/wall-street-journal-by-cointelegraph/#respond Sat, 11 Sep 2021 06:20:00 +0000 https://ardud.ro/wall-street-journal-by-cointelegraph/ CBDCs Could Lead to “Deeply Negative Interest Rates”: Wall Street Journal According to the Wall Street Journal, central bank digital currencies (CBDCs) could actually negatively impact interest rates by giving policymakers an additional tool. In his article “Digital Currencies Pave Way for Deeply Negative Interest Rates”, senior columnist James Mackintosh argues that the difference between […]]]>

CBDCs Could Lead to “Deeply Negative Interest Rates”: Wall Street Journal

According to the Wall Street Journal, central bank digital currencies (CBDCs) could actually negatively impact interest rates by giving policymakers an additional tool.

In his article “Digital Currencies Pave Way for Deeply Negative Interest Rates”, senior columnist James Mackintosh argues that the difference between a CBDC and cash would be highlighted if interest rates fell below zero. People would be more inclined to hold physical money to ‘earn zero’ rather than losing money on a digital dollar issued by the central bank.

Continue reading on Coin Telegraph

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Dollar Edges higher; Growing risk aversion helps by Investing.com https://ardud.ro/dollar-edges-higher-growing-risk-aversion-helps-by-investing-com/ https://ardud.ro/dollar-edges-higher-growing-risk-aversion-helps-by-investing-com/#respond Wed, 08 Sep 2021 07:00:00 +0000 https://ardud.ro/dollar-edges-higher-growing-risk-aversion-helps-by-investing-com/ © Reuters. By Peter Nurse Investing.com – The dollar traded higher on Wednesday, benefiting from rising Treasury yields, cautiousness ahead of the European Central Bank policy meeting and concerns about global growth. At 2:55 am ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, gained 0.1% to […]]]>

© Reuters.

By Peter Nurse

Investing.com – The dollar traded higher on Wednesday, benefiting from rising Treasury yields, cautiousness ahead of the European Central Bank policy meeting and concerns about global growth.

At 2:55 am ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, gained 0.1% to 92.635, just above its highest level so far in September.

rose 0.2% to 110.44, fell 0.1% to 1.1833, fell 0.2% to 1.3760, while risk sensitivity fell 0.2% to 0.7370, following the Reserve Bank of Australia’s decision on Tuesday to extend its bond purchase program until February.

The benchmark 10-year Treasury note was trading at 1.37% early Wednesday, just off Tuesday’s high of 1.39%, which was the highest level since mid-July, and a thumbs up to the dollar.

This yield skyrocketed following Friday’s disappointing disappointment, which the market interpreted as suggesting that the Federal Reserve’s cut to its bond buying program would be delayed despite a wave of high inflation impressions. .

The weak report added to fears that the increase in Covid cases, with the United States recording around 650,000 deaths and surpassing 40 million cases last week, will dampen US economic growth in the second half of the year. Earlier this week, influential investment bank Goldman Sachs (NYSE) lowered its estimate of GDP growth in 2021 in the United States to 5.7% from 6.2%.

The next meeting of the, with discussions about the potential reduction of its increasingly boisterous monetary stimulus, is also attracting some caution.

“The time to end pandemic-era bond buying is not here, but we believe the ECB will decide to slow the pace of its bond purchases at its meeting,” analysts said. from Nordea, in a note. “Financial markets might interpret such a step with a slightly hawkish slant.”

Before Thursday’s meeting, the and are scheduled to meet later Wednesday.

The BoC is not expected to change monetary policy at this meeting, especially after disappointing second quarter GDP data. The Polish central bank is also expected to leave its benchmark at an all-time high of 0.1%, for more than a year, but the fastest inflation in the European Union is putting pressure on the bank to raises interest rates.

Disclaimer: Fusion media would like to remind you that the data contained in this site is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by the exchanges but rather by market makers. Therefore, the prices may not be exact and may differ from the actual market price, which means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media assumes no responsibility for any business losses that you may incur as a result of the use of such data.

Fusion media or anyone involved with Fusion Media will accept no responsibility for any loss or damage resulting from reliance on any information, including data, quotes, graphics and buy / sell signals contained in this website. Please be fully informed about the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investing possible.


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AUD / USD looks to RBA decision after US nonfarm wage data https://ardud.ro/aud-usd-looks-to-rba-decision-after-us-nonfarm-wage-data/ https://ardud.ro/aud-usd-looks-to-rba-decision-after-us-nonfarm-wage-data/#respond Sat, 04 Sep 2021 00:00:00 +0000 https://ardud.ro/aud-usd-looks-to-rba-decision-after-us-nonfarm-wage-data/ AUSTRALIAN DOLLAR FUNDAMENTAL FORECAST: NEUTRAL AUD / USD rallied on strong local data and weak USD RBA meeting on Tuesday key for markets looking for bearish signals Goods giving missed messages. Wsick USD direction dominate AUD / USD? The Australian dollar rose during the week as second quarter GDP data beat expectations and trade data […]]]>

AUSTRALIAN DOLLAR FUNDAMENTAL FORECAST: NEUTRAL

  • AUD / USD rallied on strong local data and weak USD
  • RBA meeting on Tuesday key for markets looking for bearish signals
  • Goods giving missed messages. Wsick USD direction dominate AUD / USD?

The Australian dollar rose during the week as second quarter GDP data beat expectations and trade data showed exports increased more than expected in July. The second quarter GDP figure stood at 0.7% q / q, beating the 0.4% forecast. Trade data showed a surplus of AU $ 12.1 billion for July compared to ten billion that the market was looking for.

The second quarter GDP impression is in the rear view mirror as the impact of the Covid-19 Delta variant is not included in the data. New South Wales, the most populous state, entered detention in the last week of June. In July and August, more states were locked down, restricting movement for two-thirds of Australians.

Trade figures revealed the economy’s dependence on commodity exports. Iron ore alone accounted for A $ 26.6 billion in sales to China in July. Coal and natural gas also contributed significantly, but there was a divergence between the prices of iron ore compared to coal and natural gas. Iron ore has fallen dramatically as China cuts its steel production, while natural gas and coal have increased as demand for energy has increased.

With the disparate commodity price action, the RBA meeting on Tuesday is gaining more importance for the Australian dollar. At the July monetary policy meeting, the board announced that it would reduce government bond purchases from AUD 5 billion to AUD 4 billion per week in September. At the August meeting, the board said that given the changed circumstances around Delta, they would reconsider the reduction at the next meeting.

Despite good progress in vaccination rates, the situation around Delta infections has deteriorated and restrictions remain in place. The RBA has previously said it expects a significant rebound in economic activity once the lockdown ends later in the year.

The RBA has also previously said that fiscal policy is a better tool for temporary and localized income cuts rather than monetary policy. This was interpreted as the fact that the RBA preferred to cancel the purchase of bonds as soon as possible.

The uncertainty around the AUD / USD is not confined to RBA stocks, with movements in the US dollar playing out across all assets. Rising demand for risky assets may undermine the U.S. dollar tied to safe-haven securities, and we are seeing stock markets hitting new all-time highs on many exchanges.

The markets’ perception of what the Fed can say and ultimately do, in the wake of the nonfarm wage data, suggests that more solid data will be needed to keep the taper train on track. Stopping the weakening of the USD will depend on signs that the US economy is dynamic enough for the Fed to act by reducing stimulus.

AUD / USD, LOWER IRON ORE, HIGHER COAL AND NATURAL GAS

Graphic vscreated in TradingView

— Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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FOREX-Euro Settles Near One-Month High After Inflation Shake https://ardud.ro/forex-euro-settles-near-one-month-high-after-inflation-shake/ https://ardud.ro/forex-euro-settles-near-one-month-high-after-inflation-shake/#respond Wed, 01 Sep 2021 07:42:18 +0000 https://ardud.ro/forex-euro-settles-near-one-month-high-after-inflation-shake/ Band Saikat Chatterjee LONDON, September 1 (Reuters) – The euro consolidated gains below a nearly one-month high on Wednesday as higher than expected inflation pushed bond yields higher, forcing investors to hedge their bearish bets on the single currency. Data on Tuesday showed eurozone inflation rose to 3% year-on-year in August, the highest in a […]]]>

Band Saikat Chatterjee

LONDON, September 1 (Reuters)The euro consolidated gains below a nearly one-month high on Wednesday as higher than expected inflation pushed bond yields higher, forcing investors to hedge their bearish bets on the single currency.

Data on Tuesday showed eurozone inflation rose to 3% year-on-year in August, the highest in a decade, above the European Central Bank’s 2% target and forecast 2.7% in a Reuters poll. The reading sent German benchmark debt yields to their highest levels since late July. GVD / EUR

Rising bond yields have forced traders to halt their multi-month buying streak in US dollars against the euro. Net short bets against the greenback against the single currency have fallen to their lowest levels since March 2020, according to the latest positioning data. EURNETUSD =

Implied volatility gauges on the single currency EUR1MO = also faltered, with one-month maturities hitting their highest levels since early July as expectations grew that the ECB could signal a policy change at a meeting next week.

Robert Holzmann, governor of Austria’s central bank, said the ECB was in a situation where it might think about cutting emergency bond purchases, and added that he expected the matter be discussed during the meeting.

But despite hawkish comments and the data, the single currency hasn’t made much headway above the $ 1.18 level. At the start of trading in London, the euro EUR = EBS held at $ 1.1803, below an August 5 high of $ 1.1842 hit Tuesday after the data.

Analysts believe the euro’s lack of sustained strength is based on current ECB forecasts which suggest asset purchases will continue until rate hikes are needed, indicating that the stimulus program could be extended next year.

“Unless eurozone economic data points to continued upside surprises in the coming months, it’s hard to get excited about a persistent eurozone rate hike and, by extension, a strong uptrend in the euro / dollar, “Credit Suisse strategists said in a daily. note, stick to their year-end forecast of $ 1.16.

Elsewhere, the dollar was slightly higher against its rivals, thanks to a mix of weak Asian factory activity data and firmer yields from the US Treasury.

The dollar index = USD, which measures the greenback against six rivals, climbed to 92.777 from Tuesday, when it fell to 92.395 for the first time since Aug.6.

Global exchange rateshttps://tmsnrt.rs/2RBWI5E

(Reporting by Saikat Chatterjee; editing by Pravin Char)

((saikat.chatterjee@thomsonreuters.com; + 44-20-7542-1713; Reuters messaging: saikat.chatterjee.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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