As of 9:59 an AST, foreign exchange in holding pattern as the United States watches the U.S. senate run-offs in Georgia

PairsFederal Reserve as of 4 January 2021OANDA as of 4 January 2021OANDA as of 5 January 2021
GBP/USD1.36621.36331.36329
USD/CAD1.27531.27261.27260
USD/CNH6.52506.45526.45524
USD/DKK6.08396.06576.06566
EUR/USD1.22301.22641.22636
USD/INR73.010072.936772.9367
USD/MXN19.892019.838219.8382
USD/JPY103.1900103.02103.02
USD/NOK8.57578.53008.53002
USD/SEK8.20958.20918.20912
USD/CHF0.88410.88150.88150
Board of Governors of the Federal Reserve, OANDA

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.

PairsFederal Reserve as of 23 December 2020OANDA as of 23 December 2020OANDA as of 31 December 2020
GBP/USD1.35101.34491.35772
USD/CAD1.28411.28721.27812
USD/CNH6.54006.53236.50832
USD/DKK6.09896.10316.05598
EUR/USD1.21941.21851.22824
USD/INR73.770073.731673.1525
USD/MXN20.080020.087819.8843
USD/JPY103.5200103.50103.24
USD/NOK8.63078.68868.56439
USD/SEK8.28418.30368.18564
USD/CHF.8882.8886.88284
Source: OANDA, Board of Governors of the Federal Reserve

Legal Events Impacting Pricing of or Ability to Enter Foreign Exchange Markets

No events to report

As of 3:24 pm AST, foreign exchange rate movement in a wait and see pandemic relief environment of the US Senate

PairsFederal Reserve as of 23 December 2020OANDA as of 23 December 2020OANDA as of 29 December 2020
GBP/USD1.35101.34491.35070
USD/CAD1.28411.28721.28431
USD/CNH6.54006.53236.52721
USD/DKK6.09896.10316.08792
EUR/USD1.21941.21851.22140
USD/INR73.770073.731673.4425
USD/MXN20.080020.087819.9413
USD/JPY103.5200103.50103.64
USD/NOK8.63078.68868.63352
USD/SEK8.28418.30368.26356
USD/CHF.8882.8886.88947
Source: OANDA

Legal/Political Events Impacting Foreign Exchange

US Senate ponder Covid relief bill during rare holiday time in Washington

As of this writing, the U.S. Senate is in session debating the COVID-19 pandemic relief bill. One core issue: whether $600 in taxpayer aid should be increased to $2,000. Speaking on the Senate floor, Senator Dick Durbin, Democrat of Illinois, reiterated that the additional aid is needed immediately and that these funds won’t be put away for a rainy day but will be injected immediately into jump starting the economy. As of 3:30 pm AST, the Senate was still making its quorum call and waiting for additional senators to speak. President Donald Trump threw a wrench into the relief discussions when he expressed support for $2,000 per eligible taxpayer.

Two Republicans in the Senate, brought additional attention to themselves by joining the President in support of increasing monetary support. Senator Kelly Loeffler and Senator David Perdue, both of Georgia, are facing tough run-off elections scheduled for 5 January 2021.

Foreign exchange rates as of 2:50 pm AST

PairsPer Federal Reserve as of 18 December 2020Per OANDA as of 18 December 2020Per OANDA as of 24 December 2020
GBP/USD1.34971.35201.34485
USD/CAD1.27761.27601.28716
USD/CNH6.53956.51976.53226
USD/DKK6.07986.07316.10305
EUR/USD1.22361.22481.21854
USD/INR73.530073.413973.7316
USD/MXN19.981319.897820.0878
USD/JPY103.3500103.35103.50
USD/NOK8.59598.58788.68864
USD/SEK8.27868.27478.30357
USD/CHF0.88500.88440.88859

Legal/Political events impacting foreign and cryptocurrency exchanges

SEC Issues Statement and Requests Comment Regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers

Washington D.C., Dec. 23, 2020 —

The Securities and Exchange Commission today issued a statement and request for comment regarding the custody of digital asset securities by broker-dealers in order to encourage innovation around the application of Securities Exchange Act Rule 15c3-3 to digital asset securities.

The statement sets forth the Commission’s position that, for a period of five years, a broker-dealer operating under the circumstances set forth in the statement will not be subject to a Commission enforcement action on the basis that the broker-dealer deems itself to have obtained and maintained physical possession or control of customer fully paid and excess margin digital asset securities for the purposes of paragraph (b)(1) of Rule 15c3-3. These circumstances, among other things, include that the broker-dealer limits its business to digital asset securities, establishes and implements policies and procedures reasonably designed to mitigate the risks associated with conducting a business in digital asset securities, and provides customers with certain disclosures regarding the risks of engaging in transactions involving digital asset securities.

In addition, the Commission is requesting comment to provide the Commission and its staff with an opportunity to gain additional insight into the evolving standards and best practices with respect to custody of digital asset securities. Such insights will serve to inform any potential future Commission action in this space.

The Commission statement and request for comment are published on the Commission’s website and will become effective 60 days after publication in the Federal Register. The Commission welcomes engagement from interested parties on these issues.

Source: U.S. Securities and Exchange Commission

As of 11:34 pm AST, the US dollar in terms of Caribbean currencies is flat to strengthening with some volatility …

Pairs OANDA as of 18 December 2020 OANDA as of 23 December 2020 Notes 
USD/BBD 2.00 2.00 Pegged to the US dollar 
USD/TTD 6.6719 6.68062 Dollar strengthening 
USD/JMD 141.803 141.973 Over the last 30 days, exchange rate fell from 145.825 
USD/XCD 2.70 2.70 Pegged to the US dollar 
USD/GYD 205.239 205.570 Although risen from 204.934 on 23 November, the rise has been accompanied by volatility. 

Source: OANDA

Legal/Political events impacting US-Caribbean foreign exchange

President Trump modifies Harmonized Tariff System to reflect extension of Caribbean Basin Initiative

On 22 December 2020, President Donald J Trump announced a modification of the Harmonized Tariff System for the purpose of including the extension of the Caribbean Basin Initiative signed into law last October. The proclamation read as follows:

“The Caribbean Basin Economic Recovery Act, as amended (the “CBERA”), (title II of Public Law 98-67, 97 Stat. 384 (19 U.S.C. 2701 et seq.)), instituted a duty preference program that applies to a product of a Caribbean Basin country that has been designated by the President as a beneficiary country. On October 10, 2020, the President signed into law the Extension of the Caribbean Basin Economic Recovery Act (Public Law 116-164, 134 Stat. 758), which extends certain preferential tariff treatment accorded under the CBERA to September 30, 2030. I have determined, pursuant to section 604 of the Trade Act, that it is necessary to modify the HTS to reflect the extension of the CBERA.”

According to the U.S. International Trade Commission, the Harmonized Tariff Schedule is made up of a hierarchical structure for describing all goods in trade for duty, quota, and statistical purposes.

Sources: Executive Office of the President; U.S. International Trade Commission

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.

Foreign exchange rates; Pandemic stimulus bill passes Congress

Pairs Federal Reserve as of 18 December 2020 OANDA as of 21 December 2020 
GBP/USD 1.3497 1.33499 
USD/CAD 1.2776 1.28559 
USD/CNH 6.5395 6.53668 
USD/DKK 6.0798 6.09401 
EUR/USD 1.2236 1.22056 
USD/INR 73.5300 73.7333 
USD/MXN 19.9813 20.1582 
USD/JPY 103.3500 103.4600 
USD/NOK 8.5959 8.6862 
USD/SEK 8.2786 8.2959 
USD/CHF .8850 .8865 
Sources: Federal Reserve and OANDA

Legal/Political news impacting foreign exchange

Congress passes $900 billion relief package

Reuters reporting that the United States Senate has passed a $900 billion coronavirus relief package which includes a one-time $600 payment to eligible American taxpayers. President Donald Trump is expected to sign the legislation later today.

Federal Reserve releases select exchange rates as of 11 December 2020

Atlanta 14 December 2020, 9:43 PM EST

The Board of Governors of the Federal Reserve System today released the foreign exchange rates for the following foreign exchange pairs. Compare with exchange rates quoted by foreign exchange broker OANDA as of 9:59 PM EST:

Federal Reserve OANDA

EUR/USD = 1.2112 EUR/USD = 1.21443

GBP/USD = 1.3197 GBP/USD = 1.33503

USD/CAD = 1.2767 USD/CAD = 1.27508

USD/JPY = 103.880 USD/JPY = 103.93

Global Foreign Exchange Committee provides update on global FX code …

Press release 

GFXC meets via videoconference to discuss progress on the FX Global Code review, FX benchmarks, and announces new Co-Vice Chair

10 December 2020

The Global Foreign Exchange Committee (GFXC) met to discuss the progress being made in its review of the FX Global Code. The Committee is on track to finalise the review in mid-2021.

Ahead of its latest meeting, GFXC members received papers prepared by the working groups for each of the focus areas of the review: buy-side outreach, disclosures, anonymous trading, algorithmic trading, settlement risk, and execution principles. “The review of the Code is progressing well. One major theme across all areas of the review is the importance of clear and accessible disclosures. There is widespread support for standardised disclosures cover sheets. They have the potential to move the FX market forward in a material way, promoting greater transparency and supporting Market Participants in making informed choices.” said GFXC Chair Guy Debelle.

The GFXC discussed the feedback on these papers from the local foreign exchange committees (FXCs). The papers and the proposed changes to the Code will be revised on the back of that feedback and then recirculated to the FXCs for another round of detailed feedback in March.  A public ‘Request for Feedback’ on some of the proposals coming out of the review will be launched in April. The final proposals will be submitted for approval by the GFXC at their June 2021 meeting.

The GFXC announced that Richard de Roos, Group Head of Foreign Exchange for Standard Bank Group, has been selected as Co-Vice Chair for a two-year team.

“The GFXC is committed to its outreach and adoption of the Code to accommodate all stakeholders and jurisdictions in the foreign exchange markets. I am honoured by this appointment and excited by the opportunity it provides to emerging markets across the globe as we continue to ensure we are aligned with best practice while providing an important voice to the GFXC on our particular markets” Mr de Roos said.

Mr de Roos will succeed outgoing Co-Vice Chair, Akira Hoshino (Head of FX at Citi, Tokyo). “Akira has brought his wealth of experience from his long and illustrious career in the market to make a significant contribution as Co-Vice-Chair of the GFXC. He is a great sounding board for the work the GFXC is doing to support the effective functioning of the market.” said Dr Debelle.

The GFXC also welcomed the Indonesian Foreign Exchange Market Committee and Israel as associate members.

The GFXC continued its discussions on the WM/Reuters 4pm fix, with Refinitiv Benchmark Services Limited presenting data on trading patterns around the fix as well as updating members on its current focus areas for administering these benchmarks.

Summaries prepared by the GFXC members on broader trading conditions in foreign exchange markets are also being published today. The minutes of the meeting will be published in January.

For additional details on the GFXC and the FX Global Code, visit the GFXC website: www.globalfxc.org.

Press inquiries:

Cecile Lefort
Reserve Bank of Australia
media@globalfxc.org

Foreign exchange rates. Dollar continues its fall …

Foreign exchange rates of interest as of 9 December 2020, 5:30 pm AST:

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 .78113 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 1.28002 CAD

INR/USD = 0.01356 USD/INR=73.6386

CAD/USD= 0.78113 USD/CAD= 1.28002

JMD/USD= 0.00682 USD/JMD = 143.631

EUR/USD= 1.21122 USD/EUR = 0.82552

NGN/USD= 0.00260 USD/NGN = 379.723

CNH/USD= 0.15338 USD/CNH = 6.51859

JPY/USD = 0.00961 USD/JPY = 104.09

Source: OANDA

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