7 Jun 2013
Flash: Risky assets sensitive to US data – Merrill Lynch and BoA
FXstreet.com (London) - Research teams at Merrill Lynch and BoA explain that the risky assets have become even more sensitive to US data.
They said this is because of the uneven nature of the economic recovery (driven by the US) and the uneven nature of liquidity support (also dominated by the US), adding that the market is therefore acutely exposed to disappointments in US data (the main source of global growth failing) and to positive surprises in US data (withdrawal of policy accommodation before the rest of the world has healed to the same extent as the US).
They said this is because of the uneven nature of the economic recovery (driven by the US) and the uneven nature of liquidity support (also dominated by the US), adding that the market is therefore acutely exposed to disappointments in US data (the main source of global growth failing) and to positive surprises in US data (withdrawal of policy accommodation before the rest of the world has healed to the same extent as the US).