Category: interbank market

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Interbank market news scan: Is the U.S. House task force on monetary policy more political than monetary?

U.S. Representative French Hill, Republican of Arkansas and chairman of the U.S. House Committee on Financial Services, announced earlier this week the formation of the Monetary Policy, Treasury Market Resilience, and Economic Prosperity Task Force. According to Mr. Hill’s statement: “The Committee’s new Task Force will conduct hearings looking into issues relating to monetary policy, … Continue reading Interbank market news scan: Is the U.S. House task force on monetary policy more political than monetary?

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Interbank market news scan: HR 146. Is the Federal Reserve System ready to stop paying interest on reserve balances?

U.S. Representative Warren Davidson, Republican of Ohio, last week fired across the bow of monetary policy by introducing HR 146, a bill to amend the Federal Reserve Act by prohibiting the payment of interest on excess reserves held at Federal reserve banks. (Ready for your next trader challenge? Visit https://traderswithedge.com/?r=348) Interest on excess reserves were … Continue reading Interbank market news scan: HR 146. Is the Federal Reserve System ready to stop paying interest on reserve balances?

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The 119th Congress takes its seat tomorrow as the dollar continues to strengthen.

The GOP-controlled 119th Congress will take its seat around noon tomorrow. Over in the House chamber, there will be a vote for the Speaker of the House. Meanwhile, results from the Pan-European Manufacturing Purchasing Managers Index demonstrates the danger of making a five day call on where the EUR/USD may end up at week’s end. … Continue reading The 119th Congress takes its seat tomorrow as the dollar continues to strengthen.

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Looking behind the gardened walls of central banks

Where are the trading desks of the Federal Reserve System and the European Central Bank moving markets? Back in mid-December, the Federal Open Market Committee directed its trading desk at the Federal Reserve Bank of New York to undertake open market operations to maintain the federal funds rate between the target range of 4.25% and … Continue reading Looking behind the gardened walls of central banks

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Narrative. Perception. Sentiment. And the dollar continues to strengthen against the yen.

Narrative. Perception. Sentiment. That is what I saw tonight in play after the Bank of Japan released its statement on monetary policy. The USD/JPY was trading today around 153.786 at 1:00 pm EST. At 2:00 pm EST, when the Federal Open Market Committee released its statement, the yen had fallen, reflected in a USD/JPY of … Continue reading Narrative. Perception. Sentiment. And the dollar continues to strengthen against the yen.

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The Interbank Market: The Ghanaian cedi continues its appreciation against the dollar.

Liquidity Foreign exchange, algorithmic trading, volatility. Financial markets have become more susceptible to liquidity shortages with the rise of algorithmic trading and increased market fragmentation, according to the Bank for International Settlements. Foreign-exchange trading, meanwhile, proved more resilient potentially due to measures taken to curb unwanted behavior from high-frequency traders. Yahoo!Finance. Excess liquidity. Thailand’s banking … Continue reading The Interbank Market: The Ghanaian cedi continues its appreciation against the dollar.

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The Interbank Market: Decreasing amount of bitcoin meets liquidity crunch.

Liquidity Bitcoin. Bitcoin’s nascent DeFi scene is getting a lot of excitement, with proponents saying that it will ultimately unlock more than $1 trillion in idle capital that currently does nothing more than act as a store of value. Analytics Insight. Bitcoin. Bitcoin’s price trajectory has reached new heights, nearly hitting the $100,000 mark post-election, … Continue reading The Interbank Market: Decreasing amount of bitcoin meets liquidity crunch.