ECB and Fed flood the markets with more liquidity

摘要

Nickel rates on the London Metal Exchange have shown a strong demonstration in an impressive change of trend in the last few weeks. The metal was being quoted at a low of USD 15,300.00/mt in the middle of August, yet at the moment nickel has the resistance level of USD 18,000.00/mt in its sights. This was initiated by the belief of market participants that prices around the USD 15,000.00/mt level, even with a weak stainless steel economy, are not really lasting due to the cost curve of nickelproduction. Furthermore, the announcements of the US Federal Reserve Bank for a third QE (quantitative easing in money policy), as well as the readiness of the European Central Bank (ECB) to increase the purchase of government securities, as a mone-tary policy step, have paved the way for a transformation in attitude on the financial markets.