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Foreign Exchange
Innovative Solutions. Personalized Service.
FX Market Update
November 21, 2014
Foreign Exchange (Interbank- $3MM and up)
CURRENCY
SPOT
CURRENCY
SPOT
EUR
1.2382
BRL
2.5273
JPY
117.77
CNY
6.1244
GBP
1.5649
DKK
6.0084
CAD
1.1241
FJD
0.5096
AUD
0.8666
HKD
7.7569
CHF
0.9704
HUF
245.6500
NZD
0.7877
INR
61.7625
MXN
13.6455
KRW
1111.04
Equity Indices
MARKET
AVERAGE
DJIA
17,812.98
Nikkei
17,357.51
LIBOR Interest Rates
CURRENCY
1-MS.
USD
0.15525
EUR
0.00429
JPY
0.07929
SPOT
6.7985
44.8800
3.3908
45.8180
7.4774
1.2992
32.7500
2.2209
Interest Rates
TYPE
Fed Funds Target
Prime Rate
CHG.
93.98
56.65
2-MS.
0.20450
0.03571
0.10071
CURRENCY
NOK
PHP
PLN
RUB
SEK
SGD
THB
TRY
3-MS.
0.23285
0.06214
0.10786
6-MS.
0.32690
0.15000
0.14857
CURRENCY
TWD
UYU
VND
XPF
ZAR
Platinum
Silver
Gold
SPOT
30.8700
23.8500
21345.00
94.4700
10.9500
1220.50
16.3000
1194.20
RATE
0-0.25
3.25
12-MS.
0.56430
0.30286
0.27471
Commentary
Surprise Cut
Global markets received another jolt from the Pacific Rim, this time from the likes of the People’s Bank of China. In response to both a slowing
domestic and global economy, China’s central bank cut benchmark interest rates for the first time in two years. It cut the one-year deposit rate by 25
basis points to 2.75 per cent and the one-year lending rate by 40 basis points to 5.6 per cent, effective Saturday. China's rate move comes after the
Bank of Japan sprang a surprise on Oct. 31 by dramatically increasing the pace of its money creation, which is understandable, given the ramifications of
globalization. The inverse relationship between a weak Yen and Chinese trade prospects support the move. Basically, a weaker Yen hurts the Chinese
economy as foreigners shift preferences to a cheaper regional good.
Moving West, in a speech from Frankfurt this morning, Draghi was resolute in his message that the ECB will do whatever it takes to meet its mandate
- in similar vein to his testimony to the European Parliament. He emphasized (more than once) that the bank can and will alter the size, composition and
pace of its asset purchases in order to meet it’s mandate. He noted that the ECB should do this 'without delay' if necessary. The view that asset
purchases would boost credit creation, and help households and businesses in a region battered by weak confidence and low investment is a clear
signal that the ECB chief believes more action would soothe the region’s woes.
On this side of the pond, aside from the constant bickering and finger pointing in D.C. which have done nothing but clog the pipes of political progress
(where is Frank Underwood when you need him), the California student protests over tuition increases, and the Raiders winning a game (just win,
Baby…finally), there isn’t a lot of news to speak of that you haven’t already heard. Regarding US rates, sentiment is for continued adjustment in USD
rates as long as data follows the current pace of activity. Recent price action suggests that USD bulls need to remain patient and focus on ‘non-US’
drivers as catalysts for movement in the dollar. As we saw this week, stronger than expected CPI and a blow-out strong Philly Fed Survey were
insufficient in pushing rates higher following the FED minutes. Regardless, for now the FED may be happy that they don’t need to anything …yet.
Interest Rates
FED
0-0.25%
ECB
0.05%
BoE
0.50%
BoC
1.00%
BoJ
0.10%
RBA
2.50%
RBNZ
3.50%
Prepared by: Sean Cotton Foreign Exchange Advisor (800) 767-8442
This material is for your private information and we are not soliciting any action based upon it. Nothing in this material should be construed as an offer to sell, a solicitation of an offer to buy, or a
recommendation to buy or sell any security or other Bank product. This material provides general information only and should not be read as containing any specific investment advice or
recommendations. The discussion herein is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions
expressed are our current opinions as of the date of publication of this material .
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