Foreign exchange rates of interest to the Caribbean … as of 11:00 am AST

EUR/USD=1.13406

GBP/USD=1.36121

USD/CAD=1.27414

USD/BSD=1.000

USD/HTG=102.412

USD/DOP=55.9657

USD/JMD=154.611

USD/BBD=2.0000

USD/XCD=2.70

USD/TTD=6.63913

USD/GYD=200.488

GBP/XCD=3.67528

GBP/BBD=2.72243

GBP/JMD=210.459

GBP/BSD=1.36121

Source: OANDA

Interbank Market News Scan: Foreign exchange rates of interest to Atlanta’s immigrant community as of 7:50 am EDT…

Business News

EUR/USD=1.13649

GBP/USD=1.36048

USD/CAD=1.27003

USD/INR=74.9424

USD/NGN=415.459

USD/GHS=6.44983

USD/DOP=56.2751

USD/JMD=155.493

USD/GYD=200.426

USD/TTD=6.65983

USD/XCD=2.70

USD/BTC=0.00002

USD/ETH=0.00033

Source: OANDA

Dollar Index=95.81

Source: MarketWatch

Interbank Market News Scan: Foreign exchange and crypto rates of interest as 9:51 am EDT

EUR/USD=1.1294

GBP/USD=1.3550

USD/MXN=20.5450

USD/GTQ=7.5086

USD/NGN=415.203

USD/GHS=6.2762

USD/VND=22,646.7

USD/JPY=114.49

USD/INR=74.7325

USD/BTC=0.00003

USD/ETH=0.00036

Source: OANDA

MarketWatch Dollar Index: 95.53

Interbank Market News Scan: Bank of England raises its policy rate to 0.5%, sees inflation at 7%.

“The UK economy continues to recover. In November last year, economic activity was back to where it was before the pandemic. Since then, the spread of Omicron meant people spent less. But as the number of new cases falls, we expect spending to go up again.

The number of people out of work is going down. The unemployment rate is only slightly higher than it was before the start of the pandemic.

Inflation (the pace of price rises) has risen above our 2% target. Prices rose by 5.4% last year.

Higher energy prices is one of the main reasons for this. Large increases in oil and gas prices have pushed up petrol prices and utility bills.

Higher prices for goods that we buy from abroad have also played a big role. As economies reopened around the world, people started to buy more goods. Some businesses struggled to meet this extra demand, held back by, for example, shortages of materials and workers. That pushed up their costs and led to higher prices for consumers.

These effects are likely to continue pushing inflation up in the coming months. We expect inflation to rise to around 7% in the spring.

We expect inflation to fall back from the middle of this year. We don’t expect that energy prices will continue to rise as fast, and the shortages that are currently making it difficult for businesses to make their products should ease. We expect inflation to be close to our target in around two years’ time.

We have raised the official interest rate we set, known as Bank Rate, to 0.5% to support inflation returning to our 2% target.  We may need to raise interest rates somewhat further.  Our job is to ensure that inflation returns to our target in a sustainable way.”

Source: Bank of England

3 February 2022

Interbank Market News Scan: Expecting GBP-USD to top 1.3780, but asking why would I want to buy the British pound?

The GBP-USD currency pair has, at the time of this writing, an exchange rate of 1.3812.  Analysis conducted by FXStreet has support for future increased price movement between 1.3640 and 1.3800 and resistance to price increase anywhere between 1.3840 and 1.3900.  Retail traders are more bearish on the currency pair’s price movement which, from what I gather from the analysis, may be contributing to GBP-USD breaching and staying above 1.3800.

Although, as a binary options trader, I focus on what exchange rate a pair will close out at by the end of the day meaning that what little profit I make is based on getting the price movement call correct, I share with most retail traders the desire to see a currency pair climb.  I will always cheer on the attainment of profit because profit equates to the income the trader needs in order to maintain a roof over her children’s heads.  But given the mostly gloomy news out of the United Kingdom, I have been asking myself, why would anyone want to buy the damned pound?

According to data from the Bank of England, inflation in the UK is running at 3.1% while the UK’s Office of National Statistics has gross domestic product growing at an annualized at 5.5%.  The UK government’s ten-year bond is yielding 1.18% and unemployment is at 4.5%.

Contrast UK performance with the United States and at first blush you wonder why exchange US currency for UK currency unless you just need a getaway to visit relatives in London.  The US is experiencing a rate of inflation more than twice the Federal Reserve’s 2% target (5.4% to be exact); is enjoying 6.7% growth in gross domestic product; and has ten-year government bonds yielding 1.65%. 

If anything, it would appear that a trader would borrow pound and make a few bets in the States.  This relative dollar strength may be what is keeping the 1.3800 lid on the GBP-USD.

In the meantime, I am thinking of conducting a comparison of UK consumer baskets to US consumer baskets.  I never hear anyone in the media make this type of comparison.  I think such a comparison would add to the discussion. Let me know what you think.  

Alton Drew

21.10.2021

Interbank market news scan as of 12:42 pm AST: central banks, cryptocurrencies, foreign exchange

Currency pairsFederal Reserve as of 25 January 2021Reuters as of 25 January 2021Reuters as of 26 January 2021 
AUD/USD0.77280.77130.7754 
USD/CAD1.27111.27511.2695 
USD/CNY6.48106.47846.4636 
EUR/USD1.21791.21381.2166 
USD/INR72.980072.954572.8814 
GBP/USD1.36851.36641.3733 
USD/JPY103.7600103.7600103.7700 
USD/MXN19.925020.110120.0006 
USD/DKK6.10816.12666.1245 
USD/NOK8.48208.54188.5475 
Sources: Federal Reserve, Reuters

The dollar’s strength continues to vary since our post yesterday.  The dollar weakened against the Australian dollar, the Canadian dollar, and the Chinese yuan.  The dollar also weakened against the British pound and the Mexican peso.  It continues to trade flat against the Japanese yen.

In other news …

Bank Indonesia will continue to maintain loose monetary policy until such signs emerge, given that inflation is currently under control, says Perry Warjiyo, the central bank’s governor. Indonesia may see signs of inflation pressure in fourth quarter of 2021: Central bank governor (msn.com)

Brazil‘s central bank does not expect to raise interest rates in the immediate future because of an unusually high degree of economic uncertainty, minutes from its last policy meeting showed on Tuesday, although fiscal risks could prompt it to tighten policy faster than its baseline scenario suggests. Brazil central bank unlikely to raise rates now as economy sputters, minutes show | Nasdaq

Nigeria’s central bank held its benchmark lending rate at 11.5% on Tuesday, governor Godwin Emefiele said at its first interest rate meeting of 2021. Nigeria’s central bank holds benchmark lending rate at 11.5% | Reuters

China’s central bank won’t exit “prematurely” from its supportive monetary policies while at the same time keeping debt risks under control, Governor Yi Gang said. China Central Bank Won’t Exit Prematurely From Stimulus, Yi Says – Bloomberg

No existing cryptocurrency has a structure that is likely to allow it to work as a means of payment over the long term, Bank of England Governor Andrew Bailey told an online forum hosted by the Davos-based World Economic Forum on Monday. Current cryptocurrencies unlikely to last, Bank of England governor says | Reuters

As of 6:01 am AST, the American dollar shows signs of strength even as Trump hints of relief bill veto …

Pairs Federal Reserve as of 18 December 2020 OANDA as of 18 December 2020 OANDA as of 23 December 2020 
GBP/USD 1.3497 1.3520 1.33917 
USD/CAD 1.2776 1.2760 1.28855 
USD/CNH 6.5395 6.5197 6.53796 
USD/DKK 6.0798 6.0731 6.09361 
EUR/USD 1.2236 1.2248 1.22053 
USD/INR 73.5300 73.4139 73.8348 
USD/MXN 19.9813 19.8978 20.0804 
USD/JPY 103.3500 103.35 103.49 
USD/NOK 8.5959 8.5878 8.68615 
USD/SEK 8.2786 8.2747 8.28832 
USD/CHF .8850 .8844 .88724 

Legal/Political events impacting foreign currencies

Trump wants more money for taxpayer households

Bloomberg reporting today President Donald J. Trump’s concerns that the pandemic relief package approved by Congress does not go far enough in providing aid to households. The President would like the current proposed amount of $600 relief for an individual increased to $2,000. Mr Trump has not definitively said that he will veto the $900 billion package which is due for his signature by 28 December.

Comparison of foreign exchange rates determined by the Board of Governors of the Federal Reserve System with current market rates.

Federal Reserve as of 4:15 pm 11 December 2020OANDA as of 10:53 am EST 15 December 2020
EUR/USD = 1.2112EUR/USD = 1.21443
GBP/USD = 1.3197GBP/USD = 1.33503
USD/CAD = 1.2767USD/CAD = 1.27548
USD/JPY = 103.880USD/JPY = 103.93

As of 11:30 am AST 10 December 2020, Foreign exchange rates between U.S., select countries in East Africa, West Africa, the Caribbean, and Asia, and BitCoin

As of  11:30 am AST, 10 December 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 .78103 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 1.28018 CAD

CAD/USD=0.78103   USD/CAD=1.28018

CNH/USD= 0.15339   USD/CNH=6.51820

EUR/USD= 1.21037   USD/EUR=0.82610

DKK/USD =0.16260   USD/DKK=6.14831

NGN/USD= 0.00260   USD/NGN=379.384

JPY/USD=0.00960   USD/JPY=104.19

INR/USD=0.01356      USD/INR=73.5975

JMD/USD=0.00683    USD/JMD=143.446

GYD/USD=0.00469       USD/GYD= 205.184

GHS/USD=0.17031     USD/GHS= 5.84142

XCD/USD=0.37037        USD/XCD= 2.70

KES/USD = 0.00889     USD/KES= 110.408

BBD/USD = 0.50000     USD/BBD = 2.0000

TTD/USD = .14459         USD/TTD= 6.66797

BTC/USD= 18252.40     USD/BTC= 0.00005

Source: OANDA

Major political/legal event impacting foreign exchange

BIS releases Basel III monitoring results on banks

Today, the Bank of International Settlements Basel III committee released results of its survey determining compliance with bank capital requirements developed in 2010 under the Basel III framework.  The framework was developed in response to the financial crisis of 2008.  The objective of Basel III was to modify bank capital requirements thus leading to less variability in a bank’s risk weighted assets.

The survey announced today found that banks were continuing to make progress toward meeting the Basel III requirements and that bank liquidity ratios pre-Covid have been improving.  

Source: Bank of International Settlements