Dollar liquidity continues to support markets as we get deeper into Q1. US dollar weakness over the last few months has given a boost to global liquidity – when measured in USD – as growth in BOJ and PBOC assets has more than offset the decline in the Fed’s balance sheet. The trend in global liquidity, and its impact on the dollar, remains a key factor for markets this year.
Be sure to tune in to tomorrow’s Bull vs. Bear show where we’ll breakdown this chart (and other related trends) in more detail.
*BOJ+PBOC Total Assets YoY% vs. DXY YoY% (Inverted)
