CAD/USD=0.7831 | USD/CAD=1.27681 | USD strengthens against CAD |
MXN/USD=0.05046 | USD/MXN=19.8053 | USD strengthens against MXN |
JMD/USD=0.00683 | USD/JMD=143.327 | |
GYD/USD=0.0047 | USD/GYD=205.536 | |
BBD/USD=0.5000 | USD/BBD=2.0000 | |
TTD/USD=0.1445 | USD/TTD=6.6701 | USD strengthens against TTD |
XCD/USD=0.3704 | USD/XCD=2.70 | |
GBP/USD=1.3566 | USD/GBP=0.7370 | USD strengthens against GBP |
EUR/USD=1.2072 | USD/EUR=0.8282 | USD flat against EUR |
NGN/USD=0.0026 | USD/NGN=385.603 | USD strengthens against NGN |
GHS/USD=0.1708 | USD/GHS=5.8282 | GHS strengthens against USD |
ZAR/USD=0.0656 | USD/ZAR=15.2324 | USD strengthens against ZAR |
KES/USD=0.0090 | USD/KES=109.112 | |
BTC/USD=36,027.0000 | USD/BTC=0.0000 | |
ETH/USD=1218.1900 | USD/ETH=0.0008 | ETH strengthens against USD |
JPY/USD=0.0100 | USD/JPY=103.73 | |
CNH/USD=0.1539 | USD/CNH=6.4954 | |
AUD/USD=0.7681 | USD/AUD=1.3016 | AUD weakens against USD |
Tag: foreign exchange
Interbank market news scan, as of 10:50 am AST: Central banks, forex, cryptocurrencies
19 January 2021
The United States Senate Committee on Finance today considers the nomination of Janet Yellen as Secretary of the Treasury. Hearing | Hearings | The United States Senate Committee on Finance
China’s interbank treasury bond index in net price opened lower at 980.92 points Monday, lower from the previous close of 981.93 points, according to the China Foreign Exchange Trade System. China’s interbank treasury bond index opens lower Monday – Xinhua | English.news.cn (xinhuanet.com)
The shift of jobs and assets to Paris after Brexit will accelerate this year, providing Europe with an opportunity to strengthen its own financial infrastructure, according to Bank of France Governor Francois Villeroy de Galhau. Bank of France Governor: Brexit Finance Shift to Paris to Accelerate in 2021 – Bloomberg
Australia’s major bank economists expect the country’s central bank to extend its A$100 billion ($77.05 billion) government bond buying programme beyond April with an updated guidance expected as soon as next month. Australia central bank seen extending QE beyond April – economists (msn.com)
More London-based financial firms are expected to relocate to France this year after Britain completed its Brexit transition, the head of the French central bank said on Tuesday. French central bank sees firms speeding up Brexit relocation this year | Reuters
Ether is closing in on an all-time high. The cryptocurrency, one of many alternatives to bitcoin, rallied as much as 17% on Tuesday to an intraday high of $1,439, according to data from industry site CoinDesk. Ether, the world’s second-biggest cryptocurrency, is closing in on an all-time high (msn.com)
Stablecoins are taking a promising step forward after the Department of the Treasury approved them for use by U.S. banks. While that helps them progress toward being a currency on par with those issued by governments, many are still unclear on what exactly stablecoins are and what sets them apart from other cryptocurrencies. What Are Stablecoins? Why Investors Are Moving To Cryptocurrency’s Safest Bet (ibtimes.com)
Interbank market news scan, at 1:04 am AST: Latest news on central banks, cryptocurrency, foreign exchange …
The dollar slipped from close to its highest in nearly one month on Tuesday as caution set in before U.S. Treasury Secretary nominee Janet Yellen testifies later, with traders keeping a close eye on the policies of the incoming Joe Biden government. Dollar retreats from one-month high as traders eye Biden’s FX policy | Reuters
Among the many races the pandemic has accelerated, none is so pointless as the issuance of central-bank digital currencies. The Canadian government, which should know better, has jumped into the fray despite earlier opposition. Reversing comments made in February 2020, Bank of Canada deputy governor Timothy Lane now believes state involvement in cryptocurrencies is a pressing matter. Along with its G7 partners, Canada has been exploring central-bank digital currencies since 2017 but the race suddenly sped up in mid-October. Central banks should stay clear of cryptocurrencies – Canadian Investor
China’s Blockchain-based Service Network (BSN) – a permissioned blockchain network for building decentralized applications and tokens – plans on releasing a beta central bank digital currency (CBDC) as early as the second half of 2021. https://www.nasdaq.com/articles/chinas-blockchain-based-service-network-to-integrate-central-bank-digital-currency-2021-01
Frank Giustra, billionaire investor and mining financier, is warning that governments and central banks are going to do everything they can to stifle Bitcoin’s journey towards universal adoption. https://dailyhodl.com/2021/01/17/billionaire-investor-says-central-banks-will-stop-at-nothing-to-clamp-down-on-bitcoin/
Interbank market news scan: Latest central bank, cryptocurrency, forex news links.
Bitcoin could be at risk of a further drop unless the digital coin climbs back above $40,000 soon. JPMorgan Strategists Say $40,000 Is Key Test for Bitcoin Boom – Bloomberg
Janet Yellen is expected to affirm the U.S.’s commitment to market-determined dollar value and give assurances that the U.S. won’t seek a weaker dollar for competitive trade advantage, the Wall Street Journal reported, citing Biden transition officials familiar with her preparation for her confirmation hearing. Yellen to Affirm Commitment to Market-Determined Dollar: WSJ – Bloomberg
Asian stocks dipped along with U.S. equity futures as investors greeted the week with a lack of risk appetite and traders looked ahead to data on the progress in China’s economic recovery. The dollar edged up. Stock Market Today: Dow, S&P Live Updates for Jan. 18, 2020 – Bloomberg
A stronger U.S. dollar is proving to be an early test for emerging-market currencies on the eve of Joe Biden’s inauguration. Emerging Markets Tested by Rising Dollar Ahead of Biden’s Return – Bloomberg
Oil extended losses in Asia on a stronger dollar and a still-surging coronavirus after slumping the most in almost four weeks on Friday following the release of disappointing U.S. economic data. Oil Extends Losses on Stronger Dollar and Still-Surging Virus – Bloomberg
The results of the first of the 24 forward foreign exchange auctions scheduled by the Bank of Ghana for 2021 indicate that the local forex market remains confident that the cedi will hold its own against the United States dollar at least through to the end of the first quarter of the year. Forex market expects stable 1st Quarter exchange rate (ghanaweb.com)
As of 11:43 am AST, foreign exchange rates between U.S., the Eurozone, certain African, Caribbean, Asian nations …
CAD/USD=0.7852 | USD/CAD=1.27263 |
MXN/USD=0.0505 | USD/MXN=19.7830 |
JMD/USD=0.00689 | USD/JMD=142.187 |
GYD/USD=0.0047 | USD/GYD=204.984 |
BBD/USD=0.5000 | USD/BBD=2.0000 |
TTD/USD=0.1448 | USD/TTD=6.6571 |
XCD/USD=0.37037 | USD/XCD=2.70 |
GBP/USD=1.3581 | USD/GBP=0.73549 |
EUR/USD=1.2075 | USD/EUR=0.8275 |
NGN/USD=0.0026 | USD/NGN=380.7000 |
GHS/USD=0.1701 | USD/GHS=5.8468 |
ZAR/USD=0.0656 | USD/ZAR=15.2200 |
KES/USD=0.0090 | USD/KES=109.135 |
BTC/USD=36,208.0000 | USD/BTC=0.0000 |
ETH/USD=955.0000 | USD/ETH=0.0009 |
JPY/USD=0.0100 | USD/JPY=103.8600 |
CNH/USD=0.1541 | USD/CNH=6.4831 |
AUD/USD=0.7701 | USD/AUD=1.2980 |
My takeaway of Brainard speech: Fed maintaining steady course. No impact on the interbank markets.
Lael Brainard, a member of the Board of Governors of the Federal Reserve System, recently delivered a speech discussing the Federal Reserve’s policy for achieving a two percent inflation goal. She reiterated the Federal Reserve’s FAIT policy, a strategy that uses a flexible average inflation targeting strategy for achieving two percent inflation. The aim, according to Governor Brainard, is to keep inflation moderately above two percent for some time, allowing the economy to make up for any short falls along the way due to running below the two percent goal.
Governor Brainard would like to see the Federal Reserve focus on achieving full employment particularly for low and moderate income U.S. households. Price inflation has not been as responsive to labor market tightness as it has in the past, The Federal Reserve aims to eliminate shortfalls to maximum employment of human capital.
I didn’t hear anything in Governor Brainard’s comments that would have a direct impact on the interbank markets, whether for foreign exchange or for overnight loans.
US waits for Senate election results from Georgia; strength of US dollar against European, African currencies a mixed bag …
Pairs | OANDA as of 4 January 2021 | OANDA as of 6 January 2021 | Notes |
USD/KES | 108.391 | 108.461 | Dollar flat |
USD/NGN | 384.938 | 381.690 | Dollar weakening |
USD/GHS | 5.8524 | 5.85693 | Dollar flat |
USD/CDF | 1950.61 | 1950.01 | Dollar flat |
USD/AOA | 648.310 | 649.149 | Dollar flat |
USD/ZAR | 14.6309 | 14.8552 | Dollar strengthening |
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 ….
Rates | Federal Reserve as of 4 January 2021 | Bloomberg as of 6 January 2021 10:30 am AST |
Federal Funds Rate | 0.09 | 0.08 |
Prime Rate | 3.25 | 3.25 |
3-month Treasury | 0.09 | 0.08 |
2-year Treasury | 0.11 | 0.13 |
10-year Treasury | 0.93 | 1.02 |
30-year Treasury | 1.66 | 1.78 |
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.
Pairs | Federal Reserve as of 4 January 2021 | OANDA as of 4 January 2021 | OANDA as of 6 January 2021 10:45 am AST |
GBP/USD | 1.3662 | 1.3633 | 1.35967 |
USD/CAD | 1.2753 | 1.2726 | 1.27269 |
USD/CNH | 6.5250 | 6.4552 | 6.43929 |
USD/DKK | 6.0839 | 6.0657 | 6.05823 |
EUR/USD | 1.2230 | 1.2264 | 1.22774 |
USD/INR | 73.0100 | 72.9367 | 73.0696 |
USD/MXN | 19.8920 | 19.8382 | 19.9091 |
USD/JPY | 103.1900 | 103.02 | 102.36 |
USD/NOK | 8.5757 | 8.5300 | 8.50760 |
USD/SEK | 8.2095 | 8.2091 | 8.20299 |
USD/CHF | 0.8841 | 0.8815 | 0.87959 |
As Africa embarks on a new trade bloc, time to take closer look at its currencies …
Pairs | OANDA as of 4 January 2021 | OANDA as of 5 January 2021 | Notes |
USD/KES | 108.391 | 108.391 | Dollar weakening |
USD/NGN | 384.938 | 384.938 | Dollar strengthening |
USD/GHS | 5.8524 | 5.85238 | Dollar weakening |
USD/CDF | 1950.61 | 1950.61 | Dollar flat |
USD/AOA | 648.310 | 648.310 | Dollar weakening |
USD/ZAR | 14.6309 | 14.6309 | Dollar flat |
Political/Regulatory/Legal News Impacting US-Africa Foreign Exchange Pairs
No information to share at this time
As of 9:59 an AST, foreign exchange in holding pattern as the United States watches the U.S. senate run-offs in Georgia
Pairs | Federal Reserve as of 4 January 2021 | OANDA as of 4 January 2021 | OANDA as of 5 January 2021 |
GBP/USD | 1.3662 | 1.3633 | 1.36329 |
USD/CAD | 1.2753 | 1.2726 | 1.27260 |
USD/CNH | 6.5250 | 6.4552 | 6.45524 |
USD/DKK | 6.0839 | 6.0657 | 6.06566 |
EUR/USD | 1.2230 | 1.2264 | 1.22636 |
USD/INR | 73.0100 | 72.9367 | 72.9367 |
USD/MXN | 19.8920 | 19.8382 | 19.8382 |
USD/JPY | 103.1900 | 103.02 | 103.02 |
USD/NOK | 8.5757 | 8.5300 | 8.53002 |
USD/SEK | 8.2095 | 8.2091 | 8.20912 |
USD/CHF | 0.8841 | 0.8815 | 0.88150 |
Regulatory news impacting foreign exchange
None at this time…
As of 9:57 am AST, foreign exchange rates show dollar weakness for certain currencies over last eight days.
Pairs | Federal Reserve as of 23 December 2020 | OANDA as of 23 December 2020 | OANDA as of 31 December 2020 |
GBP/USD | 1.3510 | 1.3449 | 1.35772 |
USD/CAD | 1.2841 | 1.2872 | 1.27812 |
USD/CNH | 6.5400 | 6.5323 | 6.50832 |
USD/DKK | 6.0989 | 6.1031 | 6.05598 |
EUR/USD | 1.2194 | 1.2185 | 1.22824 |
USD/INR | 73.7700 | 73.7316 | 73.1525 |
USD/MXN | 20.0800 | 20.0878 | 19.8843 |
USD/JPY | 103.5200 | 103.50 | 103.24 |
USD/NOK | 8.6307 | 8.6886 | 8.56439 |
USD/SEK | 8.2841 | 8.3036 | 8.18564 |
USD/CHF | .8882 | .8886 | .88284 |
Legal Events Impacting Pricing of or Ability to Enter Foreign Exchange Markets
No events to report