Aboard The Qe Bandwagon

Just about every talking head who is anyone has now jumped on the QE Part Deux bandwagon – the result has been the massive deprecation of the USD. Chicago Fed President Evans revealed in a WSJ piece that he expected the Fed to do more to aid the fledging US economy and thus helped fan the quantitative easing (QE) flame. Interestingly though, yesterday’s US data surprised to the upside as non-manufacturing ISM improved to 53.2 – nevertheless, the chant for more easing continued uninterrupted. The prospect of more “endless liquidity” (money printing) has sent risky asset prices soaring with the S&P up 2.1% and Gold nearly reaching the $1350/oz level which predicted 2 days ago. For traders looking outside the major economies, EM currencies are experiencing rapid appreciation which is ...