Connect with us

E-Financial

FXTM: Traders Bracing for Big Moves in EuroCable

Published

on

Kindly share this post

FXTM Chief Market Strategist Hussein Sayed comments on potential market moves arising from Comey’s testimony, the UK election and ECB meeting.

After a slow start to the week, traders are getting prepared for a rough ride in the currency markets. Although Comey’s testimony has attracted most of the media headlines, we didn’t see any significant disclosures from the prepared remarks released yesterday.

This explains the recovery in U.S. equities after a fall in the early hours of trading yesterday.

While we cannot assume anything, a base case scenario would not be a big surprise to arise from Comey’s testimony before Congress. I think that the ECB meeting and the UK election are the risk events that will produce the big moves today. 

The Euro has been trending significantly higher for the past three months, appreciating by more than 7% against the Dollar since early March.

Although this reflects a sign of confidence in the Eurozone, it’s kind of problematic for the ECB who’s been fighting deflation for many years. Reports released yesterday citing unnamed official sources indicated that the Central Bank will lower the inflation forecast for the next three years.

The impact on the single currency was limited as the lower inflation projections were offset by higher growth expectations.

It’s obvious we’ll not see any change in monetary policy today, and the key driver to the Euro will be the risk assessment on the economy.

If the ECB amends its risk assessment to “neutral” from the current “downside”, EURUSD could easily break above 1.13 and move towards 1.15. If the ECB disappoints and Mario Draghi doesn’t reflect confidence in the economy’s recovery, the EURUSD may be headed for a sharp selloff.

Sterling traders seemed to be pricing a May victory in today’s snap election. GBPUSD appreciated 0.4% yesterday as latest opinion polls indicated that a Tory majority is still on the cards. The higher the margin Conservatives win by, the more negotiation power May will have on Brexit terms, and the higher the Pound goes from here. I think that we can easily see a move in excess of 200 pips to the upside or the downside depending on the outcome and how much it deviates from current expectations.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

Published

on

Kindly share this post

“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


Kindly share this post
Continue Reading

E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

Published

on

Kindly share this post

Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


Kindly share this post
Continue Reading

E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


Kindly share this post
Continue Reading

Trending