Piotr Matys, EM FX Strategist at Rabobank, notes that the US Treasury Secretary Jacob Lew downplayed expectations that the G20 will come to the rescue of financial markets as apparently we are not in a crisis mode just yet. Key Quotes “Indeed, we should wait until global stocks fall by another 15-20% and it becomes clear that the idea to create wealth effect by providing unprecedented amount of liquidity has failed. Do not despair just yet as the IMF in its latest report published on Wednesday urged the G20 group to come up with a coordinated fiscal stimulus. It would be reasonable to assume that major central banks will be involved by purchasing even larger amount of bonds. What could possibly go wrong apart from the fact that politicians will be even less reluctant to implement structural reforms once (or rather IF) the global economy gains better momentum. It seems that central bankers and government officials are riding together on a financial merry-go-round, but the music may stop soon or perhaps has already stopped.” For more information, read our latest forex news.