by ZeroHedge News Staff at ZeroHedge
BofA Chief Investment Strategist Michael Hartnett has a favorite markets phrase that may be the only one a trader in this day and age needs: “Markets stop panicking when central banks start panicking.”
Well, in what may be the best news to shellshocked bulls after the worst September and worst Q3 in generations, in a harrowing year for markets, central banks are starting to panic. First it was the BOJ, then the BOE and now, it’s Switzerland’s turn.
Two weeks ago after the (first) panicked pivot by the BOE, when global markets were in freefall, we said that markets desperately needed some words of encouragement from the Fed, or failing that – and with the dollar soaring to new all time highs every day – the Fed had to make some pre-emptive announcement on USD Fx swap lines, if only to reassure global markets that amid this historic, US dollar short squeeze, at least someone can and will print as many as are needed to avoid systemic collapse.
Fed has to issue FX swap line press release before open
— zerohedge (@zerohedge) September 26, 2022
Fast forward two weeks when there still hasn’t been any formal announcement from the Fed, but every so quietly – and just as we expected – the Fed shuttled $3.1 billion to the Swiss National Bank to cover an emergency dollar shortfall…
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