More evidence that the dollar rally is pure speculation.
If you look at the Fed's (Forex) liquidity swaps they are steady at a measly $80 mln outstanding. In terms of central bank numbers that is nothing.
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The Fed uses these liquidity swaps to provide dollars to foreign central banks if their systems become short on dollars and face a possible liquidity crisis.
There have been times in the recent past when these swaps spiked up. You can see that clearly on the chart.
And nothing compares to 2008, when the Fed lent out nearly $700 bln. (Congress said nothing.)
Now they are next to nothing.
What does this mean?
It means that there is no sign of any dollar stress or lack of dollar liquidity in foreign banking systems. None. Zero. Zilch. Nada. Niente. Zippo. Squat.
So all this buying is coming from speculators who are convinced that THIS TIME the rise in rates will be bullish. (Like it was for Argentina, right?)
