0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
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
Oil - US Crude
Bullish
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
Wall Street
Bearish
Gold
Bearish
GBP/USD
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
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇮🇳 Inflation Rate YoY (JUL) due at 12:00 GMT (15min) Expected: 6.15% Previous: 6.09% https://www.dailyfx.com/economic-calendar#2020-08-13
  • UK Chief Negotiator Frost says our assessment is an agreement can be reached in September $GBP
  • Join @CVecchioFX 's #webinar at 7:30 AM ET/11:30 AM GMT for your weekly update on the world's most influential central banks. Register here: https://t.co/xCF8skC3Bz https://t.co/nV2YhbISnj
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/2MCG036HGH https://t.co/PHVjArXYww
  • Repatriation flows for $AUD? https://t.co/vOfFPvq1Ts
  • 🇮🇪 Inflation Rate YoY (JUL) Actual: -0.4% Previous: -0.4% https://www.dailyfx.com/economic-calendar#2020-08-13
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.21% US 500: -0.22% Germany 30: -0.27% France 40: -0.29% FTSE 100: -0.77% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/pNdFxFzh7s
  • Triangle patterns have three main variations and appear frequently in the forex market. These patterns provide traders with greater insight into future price movement and the possible resumption of the current trend. Learn about triangles here: https://t.co/7FV2JAxssO https://t.co/qLvzxkHY8p
  • Heads Up:🇮🇪 Inflation Rate YoY (JUL) due at 10:00 GMT (15min) Previous: -0.4% https://www.dailyfx.com/economic-calendar#2020-08-13
  • 🇨🇳 FDI (YTD) YoY (JUL) Actual: 0.5% Previous: -1.3% https://www.dailyfx.com/economic-calendar#2020-08-13
USD Unmoved Despite Outflows from Largest Foreign Treasury Holders

USD Unmoved Despite Outflows from Largest Foreign Treasury Holders

2018-08-15 20:51:00
Peter Hanks, Analyst
Share:

Talking Points:

  • June total TIC flows increased substantially, showing considerable foreign demand for US exposure
  • US treasuries saw notable outflows from the two largest foreign holders, China and Japan
  • Japan’s US treasury holdings dropped to their lowest since 2011

Check out our Economic Calendar for upcoming economic data and central bank events.

The US Dollar was largely unaffected after the release of capital movement data in the form of Treasury International Capital (TIC) flows. For the month of June, international capital flows to the United States totaled an inflow of $114.5 billion. The total inflows surpassed last month’s inflows of $69.9 billion. Long-term flows for the month of June told a different story, with an outflow of -$36.5 billion.

Although foreign inflows to the US were robust, decreases from important central banks could provide bearish sentiment for the dollar moving forward should a trend develop. China and Japan, the two largest foreign owners of US treasuries, both decreased their position. China’s holdings fell $4.4 billion to $1.18 trillion. Japan’s dropped $18.4 billion to $1.03 trillion total. The total amount of US treasuries held by Japan is now at its lowest since October 2011.

The decreased positions could be a result of the ongoing trade war, but this is rather unlikely because of the percentage of total holdings sold off. If subsequent months see similar outflows from the behemoth holders in Asia, especially China, relation to trade wars could be argued with more evidence. At this time however, any single conclusion would be too presumptuous.

The emerging markets of Turkey and Brazil also had notable changes. It is important to note this data is from last month so the recent turmoil emerging markets have found themselves in did not impact this data. Despite this, Turkey fell off the list of major holders of US treasuries while Brazil’s holdings rose to a record high $300 billion.

USD Basket (DXY) Price Chart, 10-Minute Time Frame: August 15th

USD Unmoved Despite Outflows from Largest Foreign Treasury Holders

This month’s Treasury International Capital release had minimal impact on the dollar basket, or USD/JPY and USD/CNH. The data was reasonably within range and without any persistent outflow trends, it is safe to conclude demand for US assets is still very robust, evident in the total flows figure for June.

Next month’s flows will be important to watch as capital will undoubtedly shift during the current emerging market turbulence and as trade wars persist. To see when other potentially market moving data is released this week, view our economic calendar.

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introduction to the Forex market, check out our New to FX Guide.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

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

DISCLOSURES

News & Analysis at your fingertips.

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.