We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • FTSE @ 6,150...just 80 points away from the early March gap...#ftse #stocks @DailyFXTeam https://t.co/X95auU1GC8
  • Heads Up:🇫🇷 Business Confidence due at 06:45 GMT (15min) Expected: 85 Previous: 82 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Can anyone explain Bitcoin's 'flash crash'??? #BTC #bitcoin @DailyFXTeam 🤔🤔 https://t.co/jeravYvq68
  • #Gold rising alongside stocks and yields. 'Risk-on' tilt has driven #USD lower, so anti-fiat demand may be overpowering other forces. Classic 'risk-on' elsewhere: #AUD and #NZD up with #SPX500 futures, #JPY down alongside #bonds https://t.co/D6iK49Kfsz
  • 🇩🇪 GfK Consumer Confidence Actual: -18.9 Expected: -18.3 Previous: -23.1 https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇨🇭 Balance of Trade Actual: CHF4.3B Previous: CHF3.1B https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇩🇪 GfK Consumer Confidence Actual: -18.9 Expected: -18.3 Previous: -23.4 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇨🇭 Balance of Trade due at 06:00 GMT (15min) Previous: CHF3.2B https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇩🇪 GfK Consumer Confidence due at 06:00 GMT (15min) Expected: -18.3 Previous: -23.4 https://www.dailyfx.com/economic-calendar#2020-05-26
  • Since talks of stimulus and monetary easing continue to take place, the longer term outlook for #gold remains constructive. Get your $XAUUSD market update from @PeterHanksFX here: https://t.co/s5sFogjgrq https://t.co/OdZTEgEATw
USDJPY Tumbles After Foreign Demand for U.S. Assets Rose In August

USDJPY Tumbles After Foreign Demand for U.S. Assets Rose In August

2012-10-16 13:30:00
Tzu-Wen Chen, Technical Strategist
Share:

THE TAKEAWAY: U.S. Net Long-Term TIC flows unexpected rose in August > Demand for treasury bonds remains strong amid China and Eurozone concerns > USDJPY bearish

Foreign demand for U.S. financial assets unexpectedly surged in August, as international investors sought stability in safe haven assets amid uncertainty surrounding a Chinese slowdown and ongoing debt woes in Europe. According to the Treasury International Capital (TIC) statement, long-term net purchase of U.S. assets rose to $90.0 billion in August, the most in seven months, from an upwardly revised figure of $67.2 billion the previous month. The median forecast of five economists surveyed by Bloomberg News had projected net buying at $48.0 billion.

Total foreign buying of U.S. securities rose to $91.4 billion in August from $74.0 billion in July, reflecting the flow towards the safety of the U.S. bond market as euro sovereign debt woes and concerns of a softening Chinese economy weighed on market risk sentiment. China, the largest owner of U.S. treasury assets, increased its holdings in August, signaling growing dollar optimism and government confidence in the stability of the U.S. dollar. Net purchases by China increased by $4.3 billion to $1.15 trillion.

USDJPY 1-minute Chart: October 16, 2012

USDJPY_Tumbles_After_Foreign_Demand_for_U.S._Assets_Rose_In_August__body_Picture_1.png, USDJPY Tumbles After Foreign Demand for U.S. Assets Rose In August

Chart created using Market Scope – Prepared by Tzu-Wen Chen

In the minutes following the release of the TIC report, the U.S. dollar tumbled against the Japanese yen, the alternative safe haven currency. At the time this report was written, the USDJPY pair was trading lower at 78.80 yen.

--- Written by Tzu-Wen Chen, DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.