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Some interesting charts this evening showing relationships between central bank balance sheets, foreign exchange rates, and the S&P 500.

bojecbpump

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The Money Printing Pump chart I show frequently does not factor in the Japanese printing. This chart of the ratio of Japanese central bank assets to European central bank assests shows how the S&P pullbacks align with pauses in Japanese printing.bojfeddollaryen

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The long-term relationship between dollar yen and relative Japanese and US money printing remains intact. The Japanese are printing faster than the US, hence their currency is falling. A light pause in that ratio recently has seen a pullback in dollar yen.

 

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