China's Stimulus & U.S. Dollar Weakness in Focus

Investor risk exposure has declined due to recession fears and carry trade concerns, but liquidity continues to rise.

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China is using every opportunity to stimulate its deflationary economy without overly devaluing the yuan relative to usd.

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The US remains a crucial factor for global stimulus. Now, more than ever, it's important to watch the US, especially with bill issuance in play moving forward.

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A weaker dollar often signals increased liquidity from other central banks, making the US a key player in this liquidity cycle.

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Last week, the FED's reserve bank credit decreased by $10B. Due to collateral value increase however, our GLI displays a small uptick.

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To finalize, our Liquidity Index now stands at $125.975 trillion, which is a 0.165% increase since the last report. The AE RoC remains positive.