3 reasons why EUR liquidity is a MUST watch over summer
Macro Mondays
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The Eurozone's Fragile Design
When we look at typical reactions in euro markets to a liquidity withdrawal, it's not your repostative. It usually reflects the weakness, right? So, yeah, the trade is the opposite one. That's usually the case. And I guess the reason is that as soon as you start withdrawing stimulus, essentially, or withdrawing support from euro markets, the good old fragmentation risks tend to resurface - and capital sort of returns to home under the American front. But yes, and I think also, the whole design of the Eurozone is fundamentally unbalanced. The fragility will appear once that liquidity really starts to tighten and market with demand risk premium for that scenario.I don't think
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