With the release U.S. Federal Reserve latest weekly H.4.1 report on monetary aggregates, we are happy to announce very bullish news (in terms of the global economy): the EU Business School Finance Club Global Dollar Liquidity measure is growing at the fastest pace in ... ages! It stands now at $7.8 trillion:
| USD million | ||
| Custody holdings | $3,370,216 | +7.62% |
| Fed credit | $4,431,256 | +0.45% |
| Global Liquidity | $7,801,472 | +3.43% |
The stock of custody holdings —US Treasury securities held by 'foreign' central banks— is up by an amazing $188.6bn this year. The implications (at least in my mind) are the following: (a) bullish EM currencies; (b) bearish US dollar; (c) bullish risk assets in general.
Famous last words? Yes, I know.
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