Compulsions can be hard to resist
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US dollar rises like a colossus in a sea of carnage for major markets
And still the central bank monetary easing measures continue to come. After the remarkable shunning of an opportunity to act last week, the ECB has stepped up with an emergency €750bn of asset purchases. “The Governing Council will do everything necessary within its mandate”. The Reserve Bank of Australia has also cut rates to a record low of +0.25% overnight. The trouble is, financial markets simply look at these measures now with a view of “wow, how bad could it really become?”. Subsequently any intraday rallies on any risk assets are just continually getting smashed. Forex markets have just become a ... (full story)