EURUSD - Trends, Forecasts and Implications (Part 3) - page 841
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It's the end of the month and the week, so a pullback looks legitimate.
Phoenix Capital: There will be a third round of quantitative easing
The analysts of the independent investment bank Phoenix Capital think that a third round of quantitative easing in the USA is inevitable. In their view, taking into account potential threats related to debt problems in the Eurozone, unrest in the Middle East and nuclear danger in Japan, one can expect that if the Federal Reserve stops injecting liquidity into the financial market, it will lead to a major systemic crisis.
According to experts, the Fed would not tempt fate by taking such a risk. However, it is not just that, the bank believes. The US central bank will not be able to refuse further support to banks which are "too big to fail" (TBTF banks, "Too big to fail"). These key 18 banks include Bank of America, Barclays Capital, BNP Paribas Securities, Cantor Fitzgerald & Co, Citigroup Global Markets, Credit Suisse Securities (USA), Daiwa Securities America, Deutsche Bank Securities, Goldman Sachs, HSBC Securities (USA) Inc., J. P. Morgan Securities, Jefferies & Company, Mizuho Securities USA, Morgan Stanley, Nomura Securities International, RBC Capital Markets, RBS Securities and UBS Securities.
Phoenix Capital analysts point out that these banks, which have the function of primary dealers (these banks conduct auctions on placement of Tregers), have unprecedented access to U.S. debt, both from the perspective of pricing and in terms of monetary control. From their point of view, it is these banks, not Fed Chairman Ben Bernanke, who have the real power to make decisions regarding US monetary policy. The main power, according to Phoenix Capital, is concentrated in the hands of four banks: J.P. Morgan, Bank of America, Citibank and Goldman Sachs, whose assets hold 95% of all derivatives on the balance sheets of US banks.
During the 2008 financial crisis, the Fed not only rescued these banks but also allowed them to get even stronger through a series of takeovers, Phoenix Capital says. Economists believe that the main purpose of the Fed's monetary policy in the last two years has been to support the banks listed above. Phoenix Capital believes that the Fed has to resort to such a bailout mechanism, as direct subsidies would be subject to harsh political criticism.
Look out for gold!
Tough month close :)))
Look out for gold!
Tough month close :)))
Said dough is being poured into gold specifically.
Tell me what Benya said.
it's your gartley indicator that draws that square .... you should read the instructions on what you put on your charts ))
thanks for the reply))))