At 7:00 am EST, EUR/USD opened at 1.03017 and closed at 1.03052. I have to wonder how much news leaked about the strength of today’s jobs situation report. By the beginning of the eight o’clock hour of trade, EUR/USD had fallen to 1.0257 and continued to fall further to 1.02524. OMB Statistical Policy Directive 4 … Continue reading Are government agencies following their own embargoes?
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?
As the media reacts to statements by the President-elect regarding tariffs on Canada and Mexico and taking Greenland from Denmark, I have to counsel caution about the weight and gravity of Donald Trump’s pre-inauguration pronouncements. Mr. Trump is not yet the President of the United States and until such time, trading desks should not pull … Continue reading Interbank market news scan: International Economic Emergency Powers Act: Never act on the rumor of executive action.
Analysts at FXStreet see no turn around in Europe’s growth woes especially given rising gas prices this winter. MarketWatch reports the current DXY is at 108.88 (12:21 AM EST) and FXStreet analysts can see the DXY going as high as 110.0 before making a pullback. FXStreet analysts also see continued dollar strengthening expecting the EUR/USD … Continue reading Interbank market news scan: Will trader sentiment push EUR/USD below 1.0321?
Yesterday’s biggest American political event was the election of Mike Johnson, Republican of Louisiana, to serve as Speaker of the House for the 119th Congress. Mr. Johnson was able to avoid a long selection battle for the speakership with the only major challenge coming from U.S. Representative Hakeem Jeffries, Democrat of New York. The next … Continue reading Remain mindful of data releases and political events when reading trade sentiment.
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.
Europe is closed for the day and the EUR/USD is, as of 11:01 am, priced at 1.0382. I am still confident that it will trade above 1.0288 by the end of this week. As usual, I am interested in trader sentiment within the gardened walls of the interbank market. Unless you are sitting on the … Continue reading At 11:35 am EST: If I could be the fly on a broker’s wall …
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
I am grateful to have a roof over my head, and while I do not know personally four of the five people who suffer through my mental iterations, I too am grateful that you have a roof over your heads as well. That said, beyond the safety of shelter, how much is that roof worth? … Continue reading Your house is overvalued. It is worth negative infinity.
Lawyers Write the Bets. Bankers Sell the Bets. 