The Speaker of the U.S. House, Kevin McCarthy, and the President of the United States, Joseph R. Biden, came to a tentative deal yesterday (Saturday, 27 May 2023) on the debt ceiling for the United States government. While a bill is still to be hammered out, MSN and Reuters report that the deal would put … Continue reading Consigliere: I am already seeing the impact of the debt ceiling deal…
The Stats … Currency pair 22 May 2023 23 May 2023 24 May 2023 25 May 2023 26 May 2023 BTC/USD 26820.8 26795.9 27217.6 27201.2 26276.4 EUR/USD 1.08061 1.08146 1.07862 1.07675 1.07283 GBP/USD 1.24444 1.2442 1.24145 1.23948 1.23407 USD/JPY 137.195 138.16 138.549 138.802 139.699 Source: OANDA Analysis by FXStreet notes a number of factors that … Continue reading Interbank Market News Scan: Yen value against the dollar decreased while spreads tightened…
Looming in the background is the negative impact a slowed down economy will have on the Biden Administration and to a lesser extent the incumbents in the Congress. As the Biden Administration and the Congress negotiate the debt ceiling, there is the threat that fiscal policy in the form of higher taxes may be offered up as a way to shore up lacking tax revenue. This will also put a crimp on household and business spending. Continue reading The Interbank Market News Scan: I expect the euro to continue dropping throughout the day… 8:45 AM EST
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
Lawyers Write the Bets. Bankers Sell the Bets. 