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Interbank Market News Scan: What retail traders should be looking at from the Federal Reserve perspective. 10:56 AM EST.

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The Stats …

30-Day fed Funds Futures and Options (ZQV3): 95.145

Source: CME Group.

Effective Federal Funds Rate: 5.08%

Federal Funds Target Range: 5.00% to 5.25%

Discount Window Rate: 5.25%

Interest on Reserve Balances: 5.15%

U.S. Ten-year Treasurys: 3.39%

EUR/USD=1.1026

USD/JPY=134.8500

GBP/USD=1.2650

AUD/USD=0.6747

NZD/USD=0.6299

Source: Board of Governors-Federal Reserve System.

https://traderswithedge.com/?r=348

Today’s Definition …

Proprietary trading:

“Proprietary trading refers to a financial firm or commercial bank that invests for direct market gain rather than earning commission dollars by trading on behalf of clients. Also known as “prop trading,” this type of trading activity occurs when a financial firm chooses to profit from market activities rather than thin-margin commissions obtained through client trading activity. Proprietary trading may involve the trading of stocks, bonds, commodities, currencies, or other instruments.

Financial firms or commercial banks that engage in proprietary trading believe they have a competitive advantage that will enable them to earn an annual return that exceeds index investing, bond yield appreciation, or other investment styles.” — Investopedia.

14 May 2023

Disclaimer: The data and output from this blog post does not constitute investment or legal advice and is not a personal recommendation from Alton Drew.  Nothing contained herein constitutes the solicitation of the purchase or sale of any futures or options.  Any investment activities undertaken will be at the sole risk of the reader.  Alton Drew expressly disclaims all liability for the use or interpretation (whether by visitor or by others) of information contained herein. Decisions based on this information are the sole responsibility of the reader.  Any visitor to this page agrees to hold Alton Drew harmless against any claims for damages arising from any decisions that the visitor makes based on such information.

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