EUR/USD: one to monitor on Monday?

The single European currency has been under close scrutiny in recent days due to ongoing question marks over bloc-wide policy responses to the economic costs of the coronavirus.

However, the currency is likely to continue to dominate the headlines as next week arrives.

At 6am GMT on Monday, for example, Germany will release its producer price index for June.

This is expected to show a month-on-month change from -0.4% to -0.3%.

Europe-wide current account information for May will be out at 8am GMT.

At some stage over the course of the day, the German central bank, the Bundesbank, will release its monthly report.

Another currency that is likely to face scrutiny on Monday is the Japanese yen.

The Japanese national consumer price index for June will be released at 11:30pm GMT, and is due to show a year-on-year change from 0.1% to 0%.

Arrest risk for man in Zimbabwe – against forex buyer

A man from the Zimbabwean city of Bulawayo is facing the prospect of being taken into police custody – because he bought foreign currency.

Allan Majaha Sibanda visited police to claim that he was the victim of a foreign exchange scam.

However, he was later told by police that he too could face arrest over claims that he purchased foreign currency illegally.

According to press reports, Sibanda participates in a messaging group designed to allow illicit forex dealers to communicate with one another.

He is alleged to have become involved in a transaction arranged by a member of the group during a conversation last weekend.

However, the deal apparently then went wrong – leading Sibanda to report the other man to the police.

In a statement, police shared further information about what allegedly happened.

Sibanda was apparently approached in the group by a man who was seeking a ‘float’ of around US$120,000.

In return, Sibanda was set to receive $1,400 – again in US dollars.

“He responded to that message, which had been sent by one Givemore Mapuranga,” said Inspector Abednico Ncube, a spokesperson for Bulawayo Police.

“They got into a deal and the complainant then as agreed sent $120,000 to the accused person,” he added.

However, Mapuranga later disappeared once the deal had been conducted, the police said.

He also allegedly ceased to be contactable by various means, including over the telephone and on digital platforms.

Now, though, both parties face the risk of arrest for their roles in the case.

It is understood that police will now approach the case from the perspective that both parties will have to answer to the allegations.

Zimbabwe has faced cases of alleged foreign exchange fraud before, and the problem is down in part to problems with the country’s own currency.

Its long-term battles with inflation have led to the development of a thriving black market there for foreign currencies.

While this can provide some benefits in an environment of currency problems, it has also played a role in creating the conditions for forex fraud.

About the author: Justin Freeman

Justin has twenty-two years' of experience working in the financial markets with brokers. He's held trading and risk management positions at boutique asset managers and large investment banks. Justin helps people understand their trading options in a clear, jargon-free manner.

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