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AUD monthly wrap: December 2023
A large part of the bullish bias for November was that traders had recently reached a record high level of net-short exposure, yet AUD/USD was refusing to break below 63c. We’re now seeing large speculators and managed funds increase short exposure and trim longs after it rallied as much as 5% in November. Given the Aussie stalled around trend resistance this week, we suspect a retracement could be in the cards ahead of the rally into the back of the month (assuming US equity markets enjoy their usual Santa’s rally from mid December). table AUD/USD was the strongest performer among the Aussie pairs we track in ... (full story)
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- From rba.gov.au|Dec 1, 2023
Preliminary estimates for November indicate that the index increased by 2.1 per cent (on a monthly average basis) in SDR terms, after increasing by 3.2 per cent in October ...
- From fxempire.com|Dec 1, 2023
The USD/JPY gained 0.64% on Thursday. After a 0.16% loss on Wednesday, the USD/JPY ended the day at 148.128. The USD/JPY fell to a low of 146.841 before rising to a Thursday high ...
- From gomarkets.com|Nov 30, 2023
USD bounced back in Thursday’s session with the US Dollar Index (DXY) recouping the weeks losses after finding some technical support at its 61.8 Fib level and an extreme oversold ...
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- From businessinsider.com|Dec 1, 2023
On Lyndale Street in the Logan Square neighborhood of downtown Chicago sits a six-unit condo building. The rather average building is home to more than a dozen residents, a mix of ...
- From nationwidehousepriceindex.co.uk|Dec 1, 2023
“UK house prices rose by 0.2% in November, after taking account of seasonal effects. This was the third successive monthly increase and resulted in an improvement in the annual ...
- From federalreserve.gov|Dec 1, 2023
Thank you for the opportunity to speak today.1 I'm delighted to be here to celebrate the retirement of Andrea Enria, my dear friend and colleague, who has done so much to strengthen the supervision and regulation of European banks throughout his career. In my remarks, I would like to provide perspective on some of the lessons learned from the banking stress experienced in the United States last spring for both banks and their supervisors. In particular, I will focus on how banks manage liquidity risk, the role of the central bank's discount window lending in this process, and the importance of robust liquidity planning for good times and bad. Last March, several large U.S. banks faced acute liquidity pressures when uninsured depositors looked at the banks' balance sheets and judged that the banks would be insolvent if they needed to liquidate their securities portfolios to meet potential outflows. The banks' poor interest rate and liquidity risk management triggered a crisis of confidence in their uninsured depositors, resulting in liquidity crises at these banks. In short, they faced old-fashioned bank runs, the speed of which was anything but old fashioned. Despite their compliance with our capital rules, these banks lacked enough capital to reassure uninsured depositors that they had sufficient resources to weather this liquidity storm. In addition to our domestic strains, Credit Suisse came under renewed pressure in March 2023 after a long period of liquidity pressures that had been acute since the fall of 2022. Of course, Credit Suisse had been a troubled bank for some time, with doubts about its future viability after the Archegos and Greensill scandals had tarnished its reputation. These concerns became reality when the firm was forced to announce that its internal controls over financial reporting were ineffective and had been for several years. Credit Suisse was acquired by UBS in a deal that involved triggering of Credit Suisse's contingent convertible capital instruments, a severe dilution of shareholders, and the removal of senior bank management, as well as emergency liquidity support and extraordinary loss sharing from the Swiss government. While there is more that regulators and supervisors can do to help to ensure banks' interest rate risk management and capital bases are sufficiently calibrated to the risks of their business models, today I will focus most of my comments on liquidity risk management and operational readiness for firms in the United States to utilize the Federal Reserve's discount window. This is not a new topic, as I have spoken about lessons from M post:
FED'S BARR: FED DISCOUNT WINDOW BORROWING SHOULDN'T HAVE STIGMA. post:
FED'S BARR: DISCOUNT WINDOW IS A FINANCIAL STABILITY AND MONETARY POLICY TOOL.
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- Posted: Dec 1, 2023 12:51am
- Submitted by:Category: Fundamental AnalysisComments: 0 / Views: 2,532