|USD/NGN yesterday’s close||424|
|Please get in touch with us if you need the latest USD/NGN price|
Oil prices pulled back on profit-taking on Friday after settling more than 4 percent higher a day earlier, following a surprisingly huge drawdown in U.S. crude stocks as Gulf Coast imports slumped to a record low.
South Africa’s rand gave up earlier gains against the dollar on Thursday, with traders expecting it to trade sideways for some time as nervous investors kept an eye out on possible moves against Finance Minister Pravin Gordhan. Growth in South Africa’s two key sectors slowed on Thursday, with weak activity renewing fears South Africa may struggle to avoid recession and a downgrade of its debt to junk status by year’s end. South African Finance Minister Pravin Gordhan, who is facing an investigation by police that the opposition has called a “witch-hunt”, said on Thursday that whether he remained in office was up to President Jacob Zuma.
Nigeria’s Independent National Electoral Commission (INEC) has postponed elections in the southern state of Edo to Sept. 28 from Sept. 10 because of security threats, a government official said on Thursday.
What can I say. 2 incredible PMI numbers in the UK followed by a slightly disappointing Services number and the GBP gets knocked for 6. Down 150 points at one stage it just goes to show how volatile the GBP is not only to the upcoming Brexit negotiations but also to UK data. One could argue that the data will give the BoE reason to cut UK interest rates again to stimulate the economy. I do not agree. I think rates should stay at 0.25% and allow the economy and the currency to regularise itself. Already savers have been hit hard (not to mention mortgages) banks have cut saving rates and not passed on the rate cut to mortgage holders (excl tracker mortgages that follow the UK bank rates). I think (perhaps I am “talking my book”) once the panic selling has been extinguished we could see the GBP start to find some support and rally again. I just do not see any reason why the GBP was hit so hard. What could help is a Dovish member of the FED is giving a speech on Monday ( Lael Brainard) who has openly called for a delay in hiking rates. If she changes her stance then that could be a game changer and lead to a hike later this month. If she sticks to her guns then that will help those that are calling for a rate delay
Have a great weekend
Any financial promotion contained herein has been issued and approved by ParityFX Plc (“ParityFX”); a firm authorised and regulated by the Financial Conduct Authority (“FCA”) as a Payment Services Institution with registration number 606416. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to accuracy, nor is it a complete statement of the financial products or markets referred to.
Opinions expressed are subject to change without notice and may differ or be contrary to the opinions or recommendations of ParityFX. Unless stated specifically otherwise, this is not a recommendation, offer or solicitation to buy or sell and any prices or quotations contained herein are indicative only. To the extent permitted by law, ParityFX does not accept any liability arising from the use of this communication.
Follow our tweets @parityfxplc
Follow us on LinkedIn ParityFX Plc; and at www.parityfx.com