HALISTER1: Investor Fear Derives From Policy Ineffectiveness: Englander

Investor Fear Derives From Policy Ineffectiveness: Englander

(Bloomberg) -- Perceived U.S. economic fragility leaves no place for currencies to depreciate against, Citigroup strategist Steven Englander writes in client note.
  • QE/negative rates have lost their financial market and economic impact
  • Investors looking for support at G-20 on Feb. 26-27 could be disappointed
    • There are too many simultaneous issues, meaning that policy coordination is unlikely
    • Doubtful that G-20 will produce a realizable action plan
  • U.S. economy is less fragile than thought by Fed and some investors
    • Global policy makers will be more imaginative, but FX divergence trade is sidelined for now
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Steven Englander (Citigroup Inc)

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