As of 11:43 am AST, foreign exchange rates between U.S., the Eurozone, certain African, Caribbean, Asian nations …

Source: OANDA

US waits for Senate election results from Georgia; strength of US dollar against European, African currencies a mixed bag …

PairsOANDA as of 4 January 2021OANDA as of 6 January 2021Notes
USD/KES108.391108.461Dollar flat
USD/NGN384.938381.690Dollar weakening
USD/GHS5.85245.85693Dollar flat
USD/CDF1950.611950.01Dollar flat
USD/AOA648.310649.149Dollar flat
USD/ZAR14.630914.8552Dollar strengthening
Source: OANDA

Meanwhile, as the count in Georgia comes to a close, yields on longer term notes begin to increase as the Senate gets closer to a 50-50 split and the likelihood of more spending under a Biden administration ….

RatesFederal Reserve as of 4 January 2021Bloomberg as of 6 January 2021 10:30 am AST
Federal Funds Rate0.090.08
Prime Rate3.253.25
3-month Treasury0.090.08
2-year Treasury0.110.13
10-year Treasury0.931.02
30-year Treasury1.661.78
Source: Federal Reserve, OANDA

And the buzz phrase again mid-week is dollar weakening as exchange rates for a number of foreign exchange pairs continues to fall. This in light of disappointing jobs numbers from ADP where the payroll company determined that 123,000 jobs were lost in December 2020.

PairsFederal Reserve as of 4 January 2021OANDA as of 4 January 2021OANDA as of 6 January 2021 10:45 am AST
Source: OANDA

Countries importing American product see continued decline in exchange rates.

The top six trading partners with the United States in terms of total exports to those countries saw their costs for the dollar fall over the past 30 days. The USD/CAD trading pair was priced at 1.3145 CAD on 14 November By 14 December , that rate has fallen by 2.9% to 1.2766 CAD.

The USD/MEX, priced at 20.6473 MXN on 14 November 14, is now down two percent to 20.1201 MXN. Meanwhile, the USD/CHN is now priced at 6.53252, down 1.2% from its 14 November price of 6.6106 CHN.

The USD/JPY is equal today to 104 JPY. On 14 November, this price was .8% higher at 104.82 JPY. And as the world waits for Great Britain and the European Union to settle their divorce, the exchange rate of the USD/GBP pair today at 0.75532 reflects a decline of .60% from the 0.7599 exchange rate back on 14 November.

And speaking of Europe, the USD/EUR pair has an exchange rate today of 0.82533, down 2.5% from the 14 November level of 0.8461.

Source: OANDA

Biden starts transition plans: Foreign exchange rates between U.S. and select countries in East Africa, West Africa, the Caribbean, and Asia

As of 11:11 am EST, 9 November 2020:

How to read the chart:

CAD/USD: If you come to the United States with one Canadian dollar (CAD)and wish to sell it for a US dollar (USD), the market price is .76559 USD.

USD/CAD: If you take a US dollar (USD) to Canada and wish to sell it for a Canadian dollar (CAD), the market price is 1.30530 CAD

CAD/USD=0.76559   USD/CAD=1.30530

CNH/USD= 0.15166   USD/CNH=6.58901

EUR/USD= 1.18728    USD/EUR=0.84194

DKK/USD =0.15925     USD/DKK=6.27257

NGN/USD= 0.00261    USD/NGN=381.500

JPY/USD=0.00967       USD/JPY=103.34

INR/USD=0.01350       USD/INR=73.8010

JMD/USD=0.00675      USD/JMD=145.128

GYD/USD=0.00478       USD/GYD= 209.215

GHS/USD=0.17141       USD/GHS= 5.82600

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00909       USD/KES= 108.121

Source: OANDA

Major political/legal event in the United States

Presumptive president-elect Joseph R. Biden has launched a transition website that describes his initial initiatives he plans to address upon taking office in January 2021.  Mr Biden appears prepared to engage in a level of spending to address faults and inequities in the American economic infrastructure that were in place prior to the Covid pandemic.  Spending initiatives include:

  • Providing state, local, and tribal governments with financial assistance;
  • Extending Covid crisis unemployment insurance to people out of work;
  • Provide a financial package for small businesses and entrepreneurs;
  • Creation of a public health corps that puts the unemployed to work fighting the pandemic.

No discussion has been provided by the transition team yet on the costs of these packages and the impact they may have on money supply expansion/contraction, trade, or foreign exchange rates.


The Narrative: From Red to Blue to Purple to Beige …

The United States, in order to compete with #China, will have to assume leadership of a new Eurocentric economic block. It cannot afford to have China producing and selling cheap technology to Europe while the Asian Tiger increases its debt leverage over Africa.

To counter China, the United States, over the next two decades, will have to present itself as a one-party, “culturally and physically beige” customs union that emphasizes European values. Diversity will have to take a back seat to Eurocentrism; an action that will make aligning with Europe a lot easier.

Central banks in Europe and the United States will eventually have to start raising interest rates as pressure increases from aging Boomers seeking higher yield and social programs in need of more financing.

With an increasing number of the black and Latino elite more than willing to dilute themselves to a “people of color”, Eurocentrism should take hold pretty easily among ethnic minority communities.