Dollar Could Fall Off Fiscal Cliff Into Euro Abyss
CNBC — As the fiscal cliff approaches in the United States and the euro zone crisis drags down global growth rates, central banks across the world have been delivering more and more stimulus. The problem, according to David Bloom, head of global foreign exchange strategy at HSBC, is that central banks are having less and less impact on the global economy.
“The remarkable aspect of this spate of easing and expected easing is that it feels rather underwhelming in terms of its perceived implications for the global economy,” said Bloom in a research note.
“It has not, it seems, fostered any greater degree of optimism regarding future economic growth. Perhaps it is simply too early to see such a change in mood come through,” he said.