good stuff a must read for most who dont know much in regards of market structures.
Bank positions in FX swaps: insights from CLS
A typical day sees almost $4 trillion in new FX swap contracts, most of which involve a payment of US dollars (BIS (2022)). Unlike for repo and other forms of debt, the full attendant payment obligations arising from FX swaps are not reported on a balance sheet (Borio et al (2017, 2022)). The market for FX swaps is two-tiered, with dealer banks at the core, as these instruments trade mainly over the counter (OTC). The dealer-customer segment mostly serves the FX hedging purposes of financial and non-financial customers. In addition, dealer banks transact with each other to offset the imbalances that arise in trades ... (full story)
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tweet: ECB'S VILLEROY: THE ECB WILL MAINTAIN RATES AT 4% AS NEEDED. tweet: FRENCH HICP INFLATION SEEN AT 5.8% IN 2023 (PREVIOUSLY 5.6%), 2.6% IN 2024 (PREVIOUSLY 2.4) AND 1.8% IN 2025 (PREVIOUSLY 1.9%). tweet: BANK OF FRANCE SEES GDP GROWTH AT 0.9% IN 2023 & 2024. tweet: BANK OF FRANCE CUTS 2024 CORE INFLATION FORECAST TO 2.8% VS 3%.
Flashing back to our Economics 101 classes, we know that, all else equal, a shortage of supply relative to demand will lead to rising prices. We’re see a textbook example of that ...
The Australian dollar continues to drift as we start the new trading week. In Monday’s European session, AUD/USD is trading at 0.6438, up 0.11%. The Reserve Bank of Australia ...
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Consumer spending, which accounts for about 60% of U.S. economic activity, has taken a few knocks but remains healthy overall.
tweet: US TREASURY SECRETARY YELLEN: IT WOULD BE DISASTROUS FOR US TO DECOUPLE FROM CHINA. tweet: US Treasury Secretary Yellen: US-China relationship is the most important to the world tweet: US TREASURY SECRETARY YELLEN: THE US NEEDS TO DE-RISK BUT NOT DECOUPLE FROM CHINA. tweet: US TREASURY SECRETARY YELLEN: US-CHINA BILATERAL TALKS SHOULD BE COMPLETELY ROUTINE.
Expectations are that the FOMC will leave rates unchanged after their deliberations on September 19-20. These are unlikely to be disappointed. The FOMC is unanimous in its ...