Interbank market news scan as of 1:00 pm AST: Ahead of the Fed

The Board of Governors of the Federal Reserve is expected to release their federal funds target rate today at 2:15 pm. No deviation is expected from its earlier announced strategy to keep the financial system running over two percent inflation through 2023 in order to meet any shortfalls on the central bank’s journey to get the US on a consistent two percent path. No change in tactic or strategy.

Currency pairsExchange Rate Before EventEventPost EventExchange Rate Post Event
AUD/USD0.7666Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/CAD1.2774Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/CNY6.4822Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
EUR/USD1.2075Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/INR73.0065Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
GBP/USD1.3689Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/JPY104.0000Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/MXN20.1832Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/DKK6.1554Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
USD/NOK8.6452Federal Reserve announcementNo changes in Fed funds rate or discount rate expectedNo major movement due to Fed announcement expected
Sources: Federal Reserve, Reuters

In other news ….

China's yuan inched higher
against the dollar on Tuesday, underpinned by tighter cash
conditions in domestic money markets following a spike in
short-term borrowing costs. Yuan inches higher on tighter liquidity conditions | Reuters

Focus is zeroing in when various Libor rates will expire, something ICE Benchmark Administration Ltd. is expected to clarify in the weeks ahead. Pivotal dollar Libor rates will likely live on until mid-2023, yet other Libors around the world may well expire at year-end. Libor Marks ‘Important Day’ With Partial Fix for Derivative Risk - Bloomberg 

There are other crucial factors driving the price of copper higher — and grains, too — but China is a big one. China has been using its exceptionally strong currency, the yuan, to stockpile copper and grains. China is Using its Currency to Stockpile Copper and Grains | Nasdaq