Brazil extends $60 billion FX swap line with Fed through September

© Reuters. FILE PHOTO: Brazilian Real and U.S. dollar notes are pictured at a currency exchange office in Rio de Janeiro BRASILIA (Reuters) – Brazil’s government on Friday authorized the central bank to extend its $ 60 billion swap line with the U.S. Federal Reserve until the end of September. The swap line, which has […]

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FAA chief vows tough line after some Trump supporters disrupt flights

2/2 © Reuters. FILE PHOTO: Supporters of U.S. President Donald Trump storm into the U.S. Capitol 2/2 By David Shepardson WASHINGTON (Reuters) – The head of the Federal Aviation Administration (FAA) on Saturday vowed to take “strong enforcement action” against unruly passengers following reports of supporters of U.S. President Donald Trump disrupting flights returning from […]

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Brexit trade deal marathon heads to the finish line

2/2 © Reuters. FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in London 2/2 By Gabriela Baczynska and John Chalmers BRUSSELS (Reuters) -Britain and the European Union appeared close to clinching a long-elusive trade agreement on Wednesday, raising hopes that they were now set to avoid a turbulent economic rupture on New Year’s Day. A […]

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USDJPY lower on the day. Below the 200 hour MA and trend line resistance.

200 hour MA at 104.11 The USDJPY is lower on the day and trades below the 200 hour MA at 104.114.  Admittedly, the price has traded above and below that MA level.  Early in the Asian session, the price fell below the moving average line and continue to the low for the day at 103.90. The subsequent rise […]

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USD/CAD forms an early double-bottom and breaks the trend line

Time for a retracement USD/CAD is the most interesting chart out there right now. The pair retraced the entire year-to-date move in a 1600 pip round trip that briefly broke 1.30 last week. However that level may be setting up a double bottom on the chart. In addition, the downtrend that started March 19 has […]

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Trump Lets Keystone Line Ship More Oil With Expansion Stalled

© Reuters. Trump Lets Keystone Line Ship More Oil With Expansion Stalled (Bloomberg) — The Trump administration will allow the existing Keystone pipeline to carry more oil-sands into the Midwest and U.S. Gulf Coast while the conduit’s decade-old expansion project faces renewed legal hurdles. A White House permit issued Wednesday raises the cross-border shipping limit […]

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Dollar Is Losing Its Luster as Investors Line Up to Go Short

Dollar Is Losing Its Luster as Investors Line Up to Go Short (Bloomberg) — After rocketing higher in March as the ultimate haven currency, the dollar is now headed for its worst month since the beginning of 2018, and many strategists see the sell-off continuing. Negative real rates in the U.S., the relentless spread of […]

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What’s Fed’s swap line? And how does it affect the balance sheet?

One of the first symptoms of the Covid-19 turmoil in March was a global dollar shortage, but an aggressive Fed response helped to avert the credit crunch. One of the side effects of this move was rapid expansion of the balance sheet however, the latest data from the Fed indicated that this trend has started […]

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