30 Jan 2015
Month-end flows point at USD rally
FXStreet (Bali) - Varies market reports by the investment bank community suggest that given the strong injection of capital into European stocks and bonds, much larger than inflows seen in the US for this month, which has resulted in traders underexposed the US dollar, the US Dollar looks poised to perform strongly on month-end flows.
Not only the ECB is about to embark in an unprecedented QE program wroth over $1.1 trillion euros over the course of the next 2 years, but other Central Banks in Canada, Switzerland, Denmark, Singapore, have joined the easing club. Australian and New Zealand Central Banks may also soon enough ease monetary policies, without ruling out further stimulus by the Bank of Japan.
In the case of Europe, ECB QE has led to a strong increase in fresh liquidity via smart/real money/reserva manager's asset reallocation, looking to jump on the bullish bandwagon in EU stocks and bonds in anticipation of the flooding of new printed money about to make its way into the European economy vs a much more moderate performance in the US stocks as Fed maintains hopes of rate hikes alive.
Not only the ECB is about to embark in an unprecedented QE program wroth over $1.1 trillion euros over the course of the next 2 years, but other Central Banks in Canada, Switzerland, Denmark, Singapore, have joined the easing club. Australian and New Zealand Central Banks may also soon enough ease monetary policies, without ruling out further stimulus by the Bank of Japan.
In the case of Europe, ECB QE has led to a strong increase in fresh liquidity via smart/real money/reserva manager's asset reallocation, looking to jump on the bullish bandwagon in EU stocks and bonds in anticipation of the flooding of new printed money about to make its way into the European economy vs a much more moderate performance in the US stocks as Fed maintains hopes of rate hikes alive.