Interbank market news scan: Major G-10 currencies split on growth with Swiss, Norwegian, and Swedish currencies depreciating…

The Swiss franc, Norwegian krone, and Swedish kroner ended this week depreciating the most against the US dollar. More later today as to the political, economic, central bank, and commodity price information that not only impacted the market but that brokers should be sharing to help maintain fairness and integrity in the foreign exchange market.

Currency pair22 March 202125 March 2021Percentage change
EUR/USD1.19131.1798-.96
AUD/USD0.77340.7592-1.84
GBP/USD1.38511.3712-1.00
USD/JPY108.765109.0580.27
NZD/USD0.71610.6966-2.7
USD/CHF0.92620.93721.19
USD/NOK8.52218.61381.08
USD/SEK8.53018.62931.16
USD/CAD1.25091.25880.63
Source: OANDA

Interbank market news scan: Foreign exchange and cryptocurrency rates …

As of 4:17 pm EST, these are prices for top traded currency pairs:

EUR/USD=1.1850

GBP/USD=1.3826

AUD/USD=0.7649

USD/CAD=1.2669

USD/CHF=0.9351

USD/JPY=108.8600

USD/CNY=6.5250

Source: Reuters

As of 4:30 pm EST, these are select prices for Ethereum and Bitcoin:

ETH/USD=1548.18 BTC/USD=49112.00

ETH/EUR=1299.20 BTC/EUR=41,213.70

ETH/GBP=1118.47 BTC/GBP=35,480.40

ETH/AUD=2011.80 BTC/AUD=63,818.80

ETH/CAD=1958.59 BTC/CAD=62,130.80

ETH/CHF=1439.56 BTC/CHF=45,666.20

ETH/JPY=167,662.00 BTC/JPY=5,318,610.00

ETH/CNY=10,049.70 BTC/CNY=318,798.00

Source: OANDA

8 March 2021

Interbank market news scan: Federal Reserve, community development, foreign exchange rates …

Federal Reserve Board Governor Lael Brainard made the following remarks regarding the economy, the Federal Reserve, and low income communities:

“Thank you, President Kaplan, our Advance Together partners, and everyone here for joining us today. I am honored to participate in this event and welcome the awardees of this important initiative to celebrate your success. Today marks a significant milestone in this effort to improve economic opportunity for residents of 25 counties across the great state of Texas. The Federal Reserve Bank of Dallas created Advance Together as a way to promote initiatives in Texas that reduce inequities in education and workforce development, and these Implementation Awards recognize outstanding examples of furthering those goals.

The Importance of Education and Workforce Development Initiatives
At the Federal Reserve, our community development mission is to promote economic growth and financial stability across the country, particularly in vulnerable communities. The ability to access quality education and training to build workforce skills is critical for low-income workers seeking greater opportunity for themselves and their families. Likewise, reducing the disparities in labor market opportunities among individuals in our society helps to support broader economic growth and financial stability.

These issues have taken on even greater importance over the past year. The COVID-19 pandemic has upended our personal and professional lives and continues to cause economic hardship for many Americans. While the economy has recovered substantially from the effects of the pandemic, it is concerning to see signs that the improvements have been uneven, with some households continuing to struggle with unemployment and facing financial difficulty.

Information from the Federal Reserve Board’s Survey of Household Economics and Decisionmaking, or SHED, provides evidence of these disparities.1 In the July 2020 responses to the SHED, many households reported major employment disruptions due to COVID-19, including layoffs, reductions of hours, or unpaid leave. By mid-summer, many of the affected individuals had returned to work, and many were receiving unemployment insurance benefits and other financial assistance. Even so, unemployment remained very high in July, and 23 percent of SHED respondents said they were either “just getting by” or “finding it difficult to get by.” Not surprisingly, those experiencing employment disruptions disproportionately reported that they were likely to have difficulty paying their bills.

The survey showed that employment disruptions and financial challenges disproportionately affected people of color and low-income families. And, unlike during previous recessions, a larger share of working women than men were laid off from their jobs.2

For many families, the pandemic exacerbated existing financial challenges. Economic mobility is largely driven by family financial stability and geographic resources such as transportation, quality education, and broadband access. The Fed’s research and its ongoing work in community development show that there is no quick fix for the disparities in household financial stability. And no single organization or government agency can solve these complex problems alone.

The Importance of Collaborative Efforts
This brings me to the importance of collaboration to address multidimensional community issues. While affordable housing and quality jobs are two very visible needs for low-income households, meeting these needs requires strategies that stretch across the fabric of the whole community, including childcare, education and training, transportation, and a safe and healthy environment. Collaboration between individuals and organizations of different talents and strengths can help find the kind of holistic solutions needed to bring greater opportunity to those at risk of being left behind in the recovery.

Today, we are here to celebrate Advance Together, one such effort to foster economic inclusion through innovative and collaborative programs. In 2020, the Federal Reserve completed a review of “place based” community development initiatives, those focused on a single community or area, across its 12 districts. While the place-based initiatives varied in purpose, scope, and approach from community to community, the very best of those local collaborations are reflected in Advance Together’s winning proposals. Most notably, each of these community-driven initiatives uses evidence-based research, fosters public–private partnerships, and promotes a collective vision for success.

The four winners that we are honoring today are the Educate Midland and Education Partnership of the Permian Basin; the Big Country Manufacturing Alliance, based in Abilene; the Family Pathways 2-Gen Coalition in Austin; and the Deep East Texas College and Career Alliance.

It has truly been a pleasure to learn about the unique and innovative efforts each of you are undertaking to address the education and workforce challenges in your own communities. Members of the Educate Midland & Education Partnership are analyzing student data to deepen their understanding of student outcomes by race and to identify practices that can reduce inequities in education and workforce development that limit economic opportunity. The Big Country Manufacturing Alliance is streamlining training and job placement for young workers interested in manufacturing careers. The Family Pathways 2-Gen Coalition supports students with children on their path to a college degree. And, finally, the Deep East Texas College and Career Alliance is helping rural and first-generation college students attain post-secondary credentials that are in demand by employers.

Just as Advance Together benefited from past place-based initiatives, the lessons learned from your local collaborations will inform and influence new community strategies going forward. I look forward to following your efforts to create economic opportunity in communities across Texas. It’s really an honor to join in your celebration today. Congratulations to the winners and thank you to all of the participants.”

Federal Reserve data

As of February 19, 2021, the Federal Reserve reported the prime bank rate is 3.25%.  The discount window rate is at .25% and the effective fed funds (interbank overnight rate) is at .07%. 

The Federal Reserve also reported the 2-year Treasury yield at .11; the 10-year yield at 1.34%, and the 30-year yield at 2.14%.

Foreign exchange rates:

Currency pairsExchange Rate as of 4:15 pm 22 February 2021(1) As of 6:23 am EST Exchange Rate as of 23 February 2021(2)(3)
AUD/USD0.7873 0.7896
USD/CAD1.2596 1.2613
USD/CNY6.4555 6.4631
EUR/USD1.2136 1.2149
USD/INR72.5000 72.4890
GBP/USD1.4025 1.4089
USD/JPY105.5800 105.1300
USD/MXN20.4000 20.7170
USD/DKK6.1268 6.1225
USD/NOK8.4467 8.4661
BTC/USD  51,971.1000
ETH/USD  1,700.9700
Sources: Federal Reserve(1); Reuters-FX rate(2), Crypto-rates(3)

Interbank market news scan: Central banks, foreign exchange …

Follow the links …

Sudan’s central bank steeply devalued the country’s currency, as part of a broader effort to win debt relief and revive the struggling economy. Sudan Central Bank Devalues the Currency to Revive Economy (msn.com)

The Central Bank of Morocco is now studying the concept of central bank digital currencies (CBDCs) and has set up a committee to extensively explore its pros and cons, according to reports on February 20, 2021. Morocco’s Central Bank Looks to Launch Own Digital Currency | BTCMANAGER

Assistant Governor Christopher Kent’s speech on FX markets around the turn of the year. FX Markets Around the Turn of the Year | Speeches | RBA

Reserve Bank of Australia’s cash rate target is 0.1%; 3-year Australian Government Bond Yield target, 0.1%; inflation rate, 0.9%. Reserve Bank of Australia (rba.gov.au)

People’s Bank of China announced open market operation of RMB10 billion, seven days maturity, at 2.20%. Open Market Operations No.33 [2021] (pbc.gov.cn)

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 6:53 pm EST Exchange Rate as of 21 February 2021(2)(3)
AUD/USD0.7762 0.7877
USD/CAD1.2694 1.2609
USD/CNY6.4567 6.4555
EUR/USD1.2126 1.2116
USD/INR72.6000 72.5600
GBP/USD1.3855 1.4012
USD/JPY104.9400 105.3700
USD/MXN19.9300 20.4320
USD/DKK6.1325 6.1339
USD/NOK8.4558 8.4627
BTC/USD  52843.4000
ETH/USD  1,859.5100
Sources: Federal Reserve(1); Reuters-FX rates(2); OANDA-Crypto rates(3)

Interbank market news scan: Central banks, foreign exchange; New Zealand stands pat on interest rates …

Follow the links …

The Central Bank of Nigeria (CBN) sold a total of $10.308 billion in the foreign exchange (FX) market in the first six months of 2020. Nigeria: FX Market – CBN Intervened With U.S.$10.308 Billion in Six Months – allAfrica.com

A Canadian energy firm became the world’s first nonfinancial issuer to sell debt linked to the main LIBOR alternative, a boost for policymakers in their struggle to encourage market adoption of the new financial benchmark. Corporate Bond Sale Boosts Campaign to Kill off LIBOR | Treasury & Risk (treasuryandrisk.com)

Central bank support for pandemic-hit economies looks to endure well past the recovery in output, leaving investors little option but to keep chasing a parabolic bull market until the fabled “punch bowl” is eventually removed. Column: Central Bank ‘Punch Bowl’ Still Brimming for Markets | Investing News | US News

New Zealand’s central bank is expected to leave interest rates unchanged at its first monetary policy decision of 2021 next week, as the economy rebounds faster from the coronavirus pandemic, but any tightening is still a long way off. New Zealand central bank to stand pat as economy rebounds – Reuters poll (msn.com)

Northern Trust (Nasdaq: NTRS) is experiencing strong demand for its Foreign Exchange (FX) currency management services with a number of significant new mandates over the past 12 months. Northern Trust Expands Foreign Exchange Currency Management Services Footprint with Key New Mandates (apnews.com)

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 8:24 am EST Exchange Rate as of 19 February 2021(2)(3)
AUD/USD0.7762 0.7859
USD/CAD1.2694 1.2612
USD/CNY6.4567 6.4540
EUR/USD1.2126 1.2135
USD/INR72.6000 72.4710
GBP/USD1.3855 1.4001
USD/JPY104.9400 105.3800
USD/MXN19.9300 20.3620
USD/DKK6.1325 6.1264
USD/NOK8.4558 8.4253
BTC/USD  51,893.7000
ETH/USD  1,896.1500
Sources: Federal Reserve(1); Reuters-FX rates(2), OANDA-crypto rates(3)

Interbank market news scan: Central banks shouldn’t try to fight climate change …

Follow the links …

Central banks shouldn’t try to fight climate change, as doing so could endanger financial stability and undermine their independence, a top Czech monetary official said. Central Banks Can’t Fix Climate Change, Czech Policy Maker Says (msn.com)

The European Central Bank will pay the currency bloc’s 19 central banks 1.6 billion euros in dividends this year, down from the 2.4 billion euros it paid a year ago as its profit declined, it said in a statement on Thursday. ECB cuts dividend payment to euro zone central banks | Nasdaq

Deutsche Bank AG scaled back plans for its bonus pool after the European Central Bank objected to proposed payout levels, highlighting the challenges of rewarding top performers while heeding demands for restraint during the global pandemic. Deutsche Bank Cut Bonus Pool Plans After Criticism From ECB (msn.com)

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 12:54 pm EST Exchange Rate as of 18 February 2021(2)(3)
AUD/USD0.7762 0.7779
USD/CAD1.2694 1.2701
USD/CNY6.4567 6.4869
EUR/USD1.2126 1.2079
USD/INR72.6000 72.6500
GBP/USD1.3855 1.3948
USD/JPY104.9400 105.7300
USD/MXN19.9300 20.4150
USD/DKK6.1325 6.1593
USD/NOK8.4558 8.4637
BTC/USD  48,358.6000
ETH/USD  1,700.6400
Sources: Federal Reserve (1), Reuters-FX rates (2), OANDA-crypto rates

18 February 2021

Interbank market news scan: Central banks, foreign exchange; Peoples Bank of China not afraid of enough liquidity …

Follow the links …

Naci Agbal, Turkey’s new central bank governor, began his career as a financial inspector three decades ago. He hopes such devotion to the rules will see him – and the economy – through one of the trickiest turnaround jobs in emerging markets. NEWSMAKER-Back-to-basics Agbal hopes this time is different at Turkey’s central bank | Nasdaq

China provided medium-term funds to lenders on Thursday, giving banks some relief after its cash drainage last month triggered the country’s worst liquidity squeeze since 2015. China Rolls Over $31 Billion in Medium-Term Loans to Banks – Bloomberg

Zambia became the second country in the world to increase its benchmark interest rate this year as it seeks to bring down “spiraling” inflation that’s at a five-year high. Zambia Central Bank Hikes Rate to Fight Surging Inflation – Bloomberg

Weakness in both the dollar and euro is posing a dilemma for investors about which is the best source of funding for emerging-market carry trades. On balance, the U.S. currency is still first choice. Carry Traders Clash Over Which Major Currency Has Most to Lose – Bloomberg

New York Attorney General Letitia James announced on Wednesday her office has sued to shut down Coinseed, a cryptocurrency-trading app that prosecutors allege ignored securities laws and defrauded thousands of investors. NY AG sues to shut down crypto app Coinseed alleging it sold a worthless currency and defrauded investors (msn.com)

Economist Nouriel Roubini, known as “Dr. Doom” for his pessimistic market views, said “the Flinstones had a better monetary system than bitcoin” in an interview with Bloomberg Wednesday morning. The NYU professor argued bitcoin and other digital tokens shouldn’t even be considered currencies because they lack many of the basic traits currencies must possess. ‘Dr. Doom’ economist Nouriel Roubini says ‘the Flintstones had a better monetary system than bitcoin’ and the token should not be considered a currency (msn.com)

Currency pairsExchange Rate as of 4:15 pm 16 February 2021(1) As of 2:10 am EST Exchange Rate as of 18 February 2021(2)(3)
AUD/USD0.7762 0.7754
USD/CAD1.2694 1.2699
USD/CNY6.4567 6.4505
EUR/USD1.2126 1.2044
USD/INR72.6000 72.7270
GBP/USD1.3855 1.3851
USD/JPY104.9400 105.9000
USD/MXN19.9300 20.2248
USD/DKK6.1325 6.1742
USD/NOK8.4558 8.4960
BTC/USD  48,358.6000
ETH/USD  1,700.6400
Sources: Federal Reserve (1), Reuters-FX rates (2), OANDA-Crypto rates (3)

Interbank market news scan: Digital currency won’t replicate cash characteristics …

It would be misguided to expect cash-like features of a central bank digital currency, according to one of the monetary authorities furthest ahead in exploring such a system. Central Bank Digital Money Won’t Replicate Cash, Sweden’s Riksbank Says (msn.com)

Fluency, the UK-based fintech created by Polish emigrants, plans to sell its cryptocurrency banking business and focus on working with central banks’ digital currency efforts, newspaper Puls Biznesu reported on February 15. bne IntelliNews – Polish-UK fintech Fluency to focus on central banks’ digital currency

Democratic Republic of Congo’s economy grew 0.8% in 2020 on the back of strong performance in its mining sector, and is projected to grow 3.2% this year, a central bank advisor said on Tuesday. Congo’s economy grew 0.8% in 2020, to rise 3.2% this year, says central bank | Reuters

Bank of Governor Haruhiko Kuroda said on Tuesday the recent stock price rally reflected market optimism over the global economic outlook, brushing aside views its ultra-loose monetary policy was fueling an asset price bubble. BOJ’s Kuroda says stock boom reflects economic optimism, defends ETF scheme (cnbc.com)

With global demand returning and supply bottlenecks likely to drive up shipping, food and energy prices, Bank of America believes emerging market inflation could be on the horizon. BofA recommended buying currencies backed by hawkish central banks or a robust balance of payments — namely the Brazilian real, Chinese yuan, Czech koruna and South Korean won — along with oil exporters, most notably the Russian rouble and Russian equities. Bank of America names the emerging market currencies to back as inflation risks mount (cnbc.com)

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 12:36 pm EST Exchange Rate as of 16 February 2021(2)(3)
AUD/USD0.7656 0.7759
USD/CAD1.2781 1.2698
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2102
USD/INR72.8500 72.8160
GBP/USD1.3714 1.3905
USD/JPY105.4400 105.8800
USD/MXN20.1300 20.2100
USD/DKK6.1785 6.1383
USD/NOK8.5428 8.4407
BTC/USD  45,471.7000
ETH/USD  1,683.8900
Sources: Federal Reserve (1) ; Reuters-foreign exchange rates (2); OANDA-crypto rates (3)

Interbank market news scan: Australian central bank wants to see a tighter labor market …

Follow the links …

Australia’s central bank believes it will take a significant and sustained tightening in the labor market to lift inflation to more comfortable levels, a tough task that could take years to achieve. Australia’s central bank says tighter labor market will lift inflation (cnbc.com)

A body representing cryptocurrency and blockchain stakeholders in Nigeria has joined other crypto industry players in assailing the recent Central Bank of Nigeria (CBN) directive to banks. The CBN order, which seeks snuff out crypto entities from the banking system, took effect on February 5, 2020. Nigeria Crypto Ban: Stakeholder Body, Politicians Assail Central Bank’s Directive to Financial Institutions – Emerging Markets Bitcoin News

Indonesia’s central bank is seen trimming its benchmark rate for the first time this year on Thursday, on top of the five rate cuts it has delivered since the start of the coronavirus pandemic, according to a majority of analysts in a Reuters poll. Indonesia’s central bank seen making this year’s first rate cut | The Star

As cryptocurrencies increasingly go mainstream, pressure is growing on the world’s biggest central banks to move forward with their plans to issue digital cash and fend off private sector threats to traditional money. Bitcoin’s mainstream charge raises stakes for central bank digital cash – Technology – Dunya News

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 12:23 am EST Exchange Rate as of 16 February 2021(2)(3)
AUD/USD0.7656 0.7803
USD/CAD1.2781 1.2619
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2139
USD/INR72.8500 72.6320
GBP/USD1.3714 1.3939
USD/JPY105.4400 105.5800
USD/MXN20.1300 19.9410
USD/DKK6.1785 6.1255
USD/NOK8.5428 8.3658
BTC/USD  45,471.7000
ETH/USD  1,683.8900
Sources: Federal Reserve (1) ; Reuters-exchange rates (2) ; OANDA-cryptocurrency (3)

16 February 2021

Interbank market news scan: Central banks and Foreign exchange …

Follow the links …

Central banks in emerging economies are set to move in different directions this year: Some remain in an easing mode and are expected to lower borrowing costs further, with Bloomberg Economics predicting cuts in China, Indonesia, India and Mexico. Emerging-Market Central Banks Are Set for a Hawkish Turn (msn.com)

Climate activists are warning that central banks are taking a “risky gamble” with their strategies for addressing the financial risks from global warming. Central Banks Criticized for Risky Gamble on Climate Fight (msn.com)

The truth about capital flows is worth revisiting and remembering as economists, media members and politicians continue to waste so much brain space and emotion on the doings of central banks. They’re mistaken. Central banks quite simply do not matter. Jack Ma’s Ant Group Further Exposes The Fed And Central Banks As Afterthoughts (forbes.com)

India’s foreign exchange reserves declined by $6.240 billion during the week ended February 5. According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the reserves decreased to $583.945 billion from $590.185 billion reported for the week ended January 29. India’s foreign exchange reserves plunges by over $6 bn (sify.com)

The amount of money repatriated by Filipinos abroad fell last year for the first time since 2001 as the pandemic upended the global job market. Philippine Remittances See First Drop Since 2001 (msn.com)

The safe-haven dollar started the week near two-week lows on Monday, as optimism about COVID-19 vaccine rollouts and a planned $1.9 trillion U.S. stimulus package drove up riskier currencies and stock markets across Europe and Asia. Dollar weakens as market optimism lifts riskier currencies | Reuters

Currency pairsExchange Rate as of 4:15 pm 8 February 2021(1) As of 9:30 am EST Exchange Rate as of 15 February 2021(2)(3)
AUD/USD0.7656 0.7782
USD/CAD1.2781 1.2658
USD/CNY6.4664 6.4542
EUR/USD1.2035 1.2123
USD/INR72.8500 72.6140
GBP/USD1.3714 1.3895
USD/JPY105.4400 105.3900
USD/MXN20.1300 19.9260
USD/DKK6.1785 6.1259
USD/NOK8.5428 8.4119
BTC/USD  45,583.4000
ETH/USD  1,743.7500
Sources: (1) Federal Reserve ; (2) Reuters-currency rates; (3) OANDA-crypto rates

15 February 2021