A comprehensive global liquidity tracker that aggregates central bank balance sheets and money supply across major economies, converted to USD and normalized for easy visualization.
Explore complementary indicator rolesHow it works
The indicator collects total central bank balance sheet data and M2 money supply from six major economies: USA, Canada, China, European Union, Japan, and the UK. It uses real-time forex rates to convert all values into USD, ensuring accurate and comparable measurements.
Once converted, the data is normalized to trillions of dollars, creating a standardized representation of global liquidity. The system then plots three distinct lines: Total Balance Sheet, Total M2, and Combined Total, which provide traders with a comprehensive visual representation of monetary trends and potential economic shifts.
Why it may be useful
Global liquidity indicators offer critical insights into the broader economic landscape, helping traders understand underlying monetary conditions that can significantly impact financial markets. By tracking the aggregate balance sheets and money supply of major economies, traders can gain a more nuanced perspective on potential market movements and economic trends.
This comprehensive view allows investors to anticipate potential shifts in market sentiment, currency valuations, and broader economic cycles. Understanding these macro-level indicators can help traders make more informed decisions about asset allocation, risk management, and long-term investment strategies.
When to explore it
This indicator is most effective for long-term strategic analysis, particularly for swing traders and investors interested in understanding broader economic trends. It provides valuable context during periods of significant monetary policy changes, such as when central banks are adjusting interest rates or implementing quantitative easing measures.
Traders should pay special attention to this indicator when comparing long-term economic trends, assessing potential currency movements, or evaluating the overall health of global financial systems. It is particularly useful for making informed decisions about international investments, sector rotations, and understanding potential macroeconomic shifts.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
