At its meeting today, the Board decided to increase the cash rate target by 25 basis points to 4.10 per cent. It also increased the interest rate paid on Exchange Settlement balances by 25 basis points to 4.00 per cent. Continue reading Statement by Philip Lowe, Governor: Monetary Policy Decision
If there is an increase in average wages accompanied by a year-over-year inflation rate of 4.4%, as reported by the U.S. Bureau of Economic Analysis’ personal consumption expenditure index, I don’t see why the markets would expect a pause by the Board of Governors in raising the discount window and interest on reserve balances rates and changing its federal funds overnight target range. Continue reading Interbank Market News Scan: Between debt ceiling banter and the unemployment rate, where will the EUR/USD land tomorrow?
The few that control financial and natural resources are as much afraid of uncertainty as you or I. Quelling uncertainty requires a model for managing expectations and in a credit-driven political economy that means determining before-hand where interest rates and yields should end up. Continue reading Interbank Market News Scan: As the money supply falls, asset values fall as well…
The Stats … 30-Day Federal Funds Options (ZQV3): 94.99 Source: CME Group. Effective Federal Funds Rate: 5.08% Discount Window: 5.25% Interest on Reserve Balances: 5.15% EUR/USD=1.0856 USD/JPY=135.6300 GBP/USD=1.2464 AUD/USD=0.6649 NZD/USD=0.6193 Source: Board of Governors-Federal Reserve System. DXY=103.04 Source: MarketWatch. Today’s Definition: Effective federal funds rate “A volume-weighted median of transaction-level data collected from depository institutions.” … Continue reading Interbank Market News Scan: I expect the EUR/USD to close above 1.0808 tomorrow.
The upside for the “knowledge worker” is that if she plays her cards right, she can go from being a digital version of a tenant farmer and trade her own coin. She has the research ability and given the digital tools that she likely helped develop, she can identify opportunities for trade and actively enter the markets. This is why I shed no tears about engineers being laid off from Facebook, Google, or Twitter. You have the digital skills and the severance pay to become traders. Continue reading Interbank market news scan: Most of us are digital serfs. Some of us will learn to trade.
The Stats … 30-Day Federal Funds Futures and Options: 95.135 Source: CME Group. Effective Federal Funds Rate: 5.08% Federal Funds Target Range: 5.00% to 5.25%. Discount Window: 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: market maker. “A firm … Continue reading Interbank Market News Scan: What retail traders should look at from the Federal Reserve perspective at 8:43 am EST.
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 … Continue reading Interbank Market News Scan: What retail traders should be looking at from the Federal Reserve perspective. 10:56 AM EST.
The takeaway: The role of government is to feed the bond markets … Markets are not the creation of people. Markets are the creation of kings and courts designed to encourage the efficient extraction of energy, yield, and taxes. The king’s currency is a derivative of real money, the yield and energy produced by the … Continue reading Interbank Market News Scan: Fed funds, bitcoin, and foreign exchange rates at 9:40 am EST
30-Day Fed Funds Futures and Options (ZQV3): 95.205 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% Source: Board of Governors-Federal Reserve System U.S. Ten-year Treasurys: 3.392 Source: MarketWatch BTC/USD: Broker bid: 27718.6, Broker ask: 27765.6 GBP/USD: Broker bid: 1.26244, … Continue reading Interbank Market News Scan: Federal funds, Treasury note, foreign exchange, and bitcoin data as of 8:15 am EST
Lawyers Write the Bets. Bankers Sell the Bets. 