Global liquidity breakout
A weighted sum of global liquidity has just broken out of a falling wedge, signaling a clear cash injection into the financial system. This breakout suggests an imminent shift in market conditions, as liquidity expansion typically fuels risk-on sentiment across equities, crypto, and commodities. Since this is a lagging indicator, markets are expected to react soon, with asset prices likely to follow the upward momentum driven by increased liquidity.
The formula aggregates the total assets of major central banks, including the Federal Reserve, Bank of Japan, People’s Bank of China, and European Central Bank, while adjusting for currency exchange rates to reflect their true impact in USD terms. Liquidity-draining factors such as the Reverse Repo (RRP) and the Treasury General Account (TGA) are subtracted to provide a clearer picture of the actual liquidity available in the system.
The formula aggregates the total assets of major central banks, including the Federal Reserve, Bank of Japan, People’s Bank of China, and European Central Bank, while adjusting for currency exchange rates to reflect their true impact in USD terms. Liquidity-draining factors such as the Reverse Repo (RRP) and the Treasury General Account (TGA) are subtracted to provide a clearer picture of the actual liquidity available in the system.
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Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.