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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive summary:
- The constant worsening in the economic outlook in both EM and DM questions if central banks will be able to exit stimulus in 2022 without having a significant impact on asset prices.
- Momentum in risky assets seems to be mostly driven by the rising liquidity; hence, the trend in equities could halt as liquidity starts to dry up.
- A sudden change in US policymakers' tone regarding monetary policy outlook could lead to a consolidation in the US Dollar.
Link to full article:
The Long USD Trade is starting to get 'crowded', therefore a change of tone from Fed policymakers due to the new Covid variant could lead to a sharp consolidation on the USD in the coming weeks. The chart below shows that the net long speculative contracts rose to over 210K in November, their highest level since early 2019.
Source: Bloomberg/CFTC/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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