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Monday, December 1, 2008

Fed's forex swaps decline by $85.5 billion in the latest week



Foreign exchange holdings of the Fed declined by $85.5 billion in the latest week. I do not know if that is due to some of these swaps being settled, or if the decline is due to mark-to-market losses in forex positions. (Probably the former, as currencies foreign currencies rallied in the week in question.)

Access the full report here.

2 comments:

  1. UK to decrease increase rates up to 2 basis in December

    Daily FX
    Overnight Interest Rate Update 12.01.08
    Sunday November 30, 11:58 pm ET
    By DailyFX Research strategist@dailyfx.com


    Current Yesterday
    USD 1.16250 0.98750
    GBP 3.01250 3.00000
    EUR 2.94375 2.90375
    JPY 0.59375 0.55625
    CHF 0.53833 0.52500
    AUD 5.18750 5.17500
    CAD 2.50000 2.44167
    NZD 6.68750 6.86250

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  2. According to ECB website, some swaps were "settled" on Nov 20 and it looks like they were selling euro in the days prior to that. When the swaps closed the euro rallied. The next event is December 18th. Expect to see the euro weaken several days prior to that, if the recent swap-related selling is any guide.

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