Category: interbank market

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Interbank market news scan: Foreign exchange rates as of 8:43 am EST

Currency pair Federal Reserve System(1) x-rates.com OANDA EUR/USD 1.0887 1.0931 1.0944 GBP/USD 1.2701 1.2635 1.2737 AUD/USD 0.6687 0.6609 0.6694 NZD/USD 0.6149 0.6076 0.6173 CHF/USD 1.1137 1.1137 1.118 JPY/USD 0.0070 0.0069 0.0070 Rates reflected in American terms. (Are you ready to take trading to the next level? http://toptiertrader.com/?ref=1449) Today’s definition: Retail foreign exchange dealer Investopedia offers … Continue reading Interbank market news scan: Foreign exchange rates as of 8:43 am EST

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Interbank market news scan: Comparison of foreign exchange rates amongst banks; defining counterparty risk.

Currency pair Interbank market(1) Bank of America Wells Fargo OANDA EUR/USD 1.0887 1.0300 1.1471 1.0906 GBP/USD 1.2701 1.2037 1.3375 1.2722 AUD/USD 0.6678 0.6308 0.7023 0.6678 NZD/USD 0.6149 0.5825 0.6479 0.6164 CHF/USD 0.8979 1.0593 1.1754 1.11719 JPY/USD 0.0070 0.0066 0.0074 0.0070 What is counterparty risk? According to the news and education website, Investopedia, counterparty risk is … Continue reading Interbank market news scan: Comparison of foreign exchange rates amongst banks; defining counterparty risk.

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Interbank market news scan: Last week’s expectation of no Fed rate hike accompanied a lack of volatility in the foreign exchange market.

Last week, the Federal Open Market Committee of the Federal Reserve System decided to keep the target range for the federal funds rate between 5.00% and 5.25%. As the foreign exchange markets got closer to the 14 June 2023 decision, spreads in trade of EUR/USD, GBP/USD, USD/JPY, and AUD/USD got closer between 12 and 13 … Continue reading Interbank market news scan: Last week’s expectation of no Fed rate hike accompanied a lack of volatility in the foreign exchange market.

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A quiet Monday morning before the Federal Open Market Committee meeting …

I sit in the group that sees a 19.6% chance that the FOMC increases the fed funds target range by 25 basis points to a range of 5.25% to 5.50%. For the asset-less, wage earning class, we may benefit from rate increases due to greater returns on the cash we accumulate. Also, for those of us who were able to hoard cash, falling asset prices may give us a chance to accumulate other income generating assets or purchase non-income generating assets and convert them into money makers. Continue reading A quiet Monday morning before the Federal Open Market Committee meeting …

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Interbank Market News Scan: Between debt ceiling banter and the unemployment rate, where will the EUR/USD land tomorrow?

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?

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Interbank Market News Scan: As the money supply falls, asset values fall as well…

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…

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Interbank Market News Scan: I expect the EUR/USD to close above 1.0808 tomorrow.

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.

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Interbank market news scan: Most of us are digital serfs. Some of us will learn to trade.

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.