Global Liquidity Watch: Weekly Update

Levelling Off?

Global liquidity seems to be levelling off, with short‑term strength driven by base effects, low volatility and renewed Fed injections. SMB has stalled on weakening China liquidity, ongoing BoJ/ECB QT and US dollar strength. Investors remain broadly risk‑on, though they are gradually trimming exposure to Emerging Markets and rotating modestly within Developed Markets.