Finding Myself In Good Company – In Wednesday’s Comments, I postulated that because the ECB’s QE did not have available a broad and deep reservoir of bonds (as had the Fed and BOJ), the ECB might have to stray into alternate and unusual instruments. That would stretch the tether on bond yields between continents by compounding the impact of QE, thus putting upward pressure on the dollar.
Yesterday morning, the sharp-eyed and roundly respected market observer, Michael Block of Rhino Trading made a similar observation in discussing a speech by ECB Board Member Peter Praet. Here’s a bit of what Mr. Block wrote:
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