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The article doesn't say a word about money printing which is probably the main story (along interest rates). The US has stopped printing money (and pretends it
by cm2187 4y ago
The article doesn't say a word about money printing which is probably the main story (along interest rates). The US has stopped printing money (and pretends it will shrink the Fed's balance sheet, though they still haven't started [1]). The ECB and BoE are still printing money. So mechanically USD goes up against both GBP and EUR.
[1] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
- jleyank 4y agoThis assumes Canada also has stopped printing money, which is certainly not what the opposition states…
- jbay808 4y agoCanadian interest rate hikes and QT are proceeding at a comparable pace to the US, perhaps faster.
- laurencerowe 4y ago> The ECB and BoE are still printing money. So mechanically USD goes up against both GBP and EUR. The ECB has stopped bond buying as of July 1st. https://www.reuters.com/markets/rates-bonds/ecb-ends-bond-buys-signal-july-sept-rate-hikes-2022-06-09/ https://www.reuters.com/markets/rates-bonds/ecb-ends-bond-bu... The BoE stopped expanding QE in December and started tightening in March. https://www.bankofengland.co.uk/monetary-policy/quantitative-easing https://www.bankofengland.co.uk/monetary-policy/quantitative...
- cm2187 4y agoECB Balance sheet still going up [1]. Granted, BoE is now flat, I stand corrected on that [2] [1] https://tradingeconomics.com/euro-area/central-bank-balance-sheet https://tradingeconomics.com/euro-area/central-bank-balance-... [2] https://tradingeconomics.com/united-kingdom/central-bank-balance-sheet https://tradingeconomics.com/united-kingdom/central-bank-bal...
- laurencerowe 4y agoThose figures are for June 24th. I read the announcement as the ECB balance sheet stopped going up as of July 1st. The BoE balance sheet stopped going up as of December and has been going down since March. (You can see this if you switch to the 1Y view of your chart.)