Category: currencies

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Interbank market: Federal Reserve rates for a holiday shortened week and Fed clarity.

Today’s rates … 30-Day Federal Funds Futures: 94.70. Effective Federal Funds Rate: 5.33%. Interest on Reserve Balances: 5.40. Discount Window: 5.50%. EUR/USD=1.0923. USD/JPY=149.4885. Today’s definition …. interbank market– “The interbank market is a global network utilized by financial institutions to trade currencies and other currency derivatives directly between themselves. While some interbank trading is done by banks on … Continue reading Interbank market: Federal Reserve rates for a holiday shortened week and Fed clarity.

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Federal Reserve’s true dual mandate: No central bank in its right mind wants to reduce inflation.

The takeaway … I like to take a common man approach to understanding what is happening at the Federal Reserve, at least I try to. We hear all the academic and political explanations for why the Federal Reserve System exists, how it came about, etcetera, etcetera. Last night during the GOP presidential primary debates held … Continue reading Federal Reserve’s true dual mandate: No central bank in its right mind wants to reduce inflation.

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A reduction in the interchange fee cap may not hurt debit card transactions activity….

The takeaway … Back on 25 October 2023, the Board of Governors of the Federal Reserve System voted to reduce the cap on the interchange fee, a fee received by debit card issuers. 12 CFR 235.2(j) defines the interchange fee as “any fee established, charged, or received by a payment card network and paid by … Continue reading A reduction in the interchange fee cap may not hurt debit card transactions activity….

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No surprises as the Fed keeps rates the same. If there is a pivot, it is coming from the media not the Fed…

The takeaway … I listened to Jerome Powell’s press conference held yesterday after the release of the Federal Open Market Committee’s decision on the federal funds target range. The FOMC decided to maintain the target range at 5.25% to 5.50% by keeping its administered rates, the discount window and the interest on reserve balances, at … Continue reading No surprises as the Fed keeps rates the same. If there is a pivot, it is coming from the media not the Fed…

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Something stands out about foreign exchange broker spreads for the US dollar and Moroccan dirham.

The takeaway … I received a view of my blog from Morocco. That is the cool thing about this blog; I get to engage with people from around the world. I have never been to Morocco or the African continent for that matter. My son has been to Morocco and I have family in The … Continue reading Something stands out about foreign exchange broker spreads for the US dollar and Moroccan dirham.

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Foreign exchange, fed funds futures, and bond yields as of 9:35 am EST

The takeaway …. The Federal Open Market Committee is expected to announce no change in the target range for the federal funds overnight rate. The current target range is 5.25-5.50%. The federal funds rate is the rate banks charge for lending their reserves to each other overnight. The current effective (weighted) rate is approximately 5.33%. … Continue reading Foreign exchange, fed funds futures, and bond yields as of 9:35 am EST

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Will the AUD/USD keep falling through end of the week? Can Biden influence Albanese’s visit to China?

AUD/USD=0.63201 There is more to Australia than the Australian Open, which I look forward to each year because it signals the beginning of the tennis season ( For my fellow tennis-heads, the dates are 14 January to 28 January 2024). Prior to the tennis hardcourt play down under is the political hardcourt play in the … Continue reading Will the AUD/USD keep falling through end of the week? Can Biden influence Albanese’s visit to China?

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Biden supports a two-state solution for Israel and Palestine.

At 10:06 am as President Joe Biden began delivering remarks from Tel Aviv, the EUR/USD was 1.05475 and GBP/USD was 1.21622. Mr Biden reiterated that the United States supported Israel; that the Jewish state would not stand alone. Mr Biden also noted that the United States saw no higher priority than getting back American hostages. … Continue reading Biden supports a two-state solution for Israel and Palestine.

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Interbank market: At 8:29 am EST. Federal Reserve reference rates and fed funds options rate.

30-day Federal Funds Futures: 94.55 Interest on Reserve Balances: 5.40% Discount Window Rate: 5.50% Effective Federal Funds Rate: 5.33% EUR/USD: 1.0571 GBP/USD: 1.2202 We will circle back around later today after taking a look at Federal Reserve sentiment and any other political action that may impact the betting markets. Banks broker the bets. Lawyers write … Continue reading Interbank market: At 8:29 am EST. Federal Reserve reference rates and fed funds options rate.