Forex Blog

September 15, 2011

ECB Adds Liquidy With Help From US Fed!

What started out his morning as an orderly market became anything but as the ECB announced that further Dollar liquidy measures have been put in place in coordination with the US Fed.  This is going to help European banks that some thought may be facing a liquidity crisis as now there are more Dollars available to the ECB.

This was “one” of the problems facing the ECB and the fear was that there would not be enough Dollars to go around should banks need more capital.  While I’m uncertain of the details of the move, the market sees this as positve for the Euro and for risk appetite in general, as seen in the chart below.

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