Market Update by Michael Howell from Capital War

Global liquidity edged lower again last week, according to measures derived from the weekly balance sheets of the major Central Banks and collateral values. Central Bank liquidity growth remains weak, bond markets are faltering, and the US dollar is recovering.

These all dampen liquidity growth. The collateral multiplier though is holding up thanks to lower bond market volatility.

A sustained fall in liquidity through Q2 will put pressure on risk assets and liquidity-sensitive cryptocurrencies in Q3 but that is for later. For now, risk asset markets and cryptocurrencies are being supported by the Q1 liquidity upturn, which saw global liquidity expand by over US$5tr.