ORBEX: Fed Injects Money in Repo Markets BUT Is That Really QE?
Market participants seem to have taken Fed’s liquidity injections as QE, dragging dollar down.
Despite increasing the balance sheet, the Fed’s move should be really reassuring investors that funding pressures, at least in the short-term, are and will be lower.
Or, should it not?
Well, the demand for funding was slower than expected near year’s end. But is this perhaps because institutions are trying to shrink their balance sheets to hit yearly targets...?
Timestamps
USDCHF 2H 02:00
AUDUSD 2H 04:50
NZDUSD 2H 05:55
Trade safe
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
Despite increasing the balance sheet, the Fed’s move should be really reassuring investors that funding pressures, at least in the short-term, are and will be lower.
Or, should it not?
Well, the demand for funding was slower than expected near year’s end. But is this perhaps because institutions are trying to shrink their balance sheets to hit yearly targets...?
Timestamps
USDCHF 2H 02:00
AUDUSD 2H 04:50
NZDUSD 2H 05:55
Trade safe
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice
