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US Treasuries positions are reduced by Japan and China in November
In November, Japan and China, the two leading foreign American creditors, diminished their holdings of American government debt, when the evergreen buck weakened versus the two countries' currencies, as data from the US Treasury Department published on Wednesday revealed.
Their reduced position in American Treasuries underpinned the notion, which foreign key financial institutions are actually cutting back their greenback exposure in their FX reserves.
Reserve diversification has recently drawn attention of market participants with the underperformance of both the evergreen buck and Treasuries consistent with hopes of major banks cutting allocation to the US currency, as some financial analysts stressed.
In October, the International Monetary Fund informed that the greenback’s share of global FX reserves dived in the third quarter of last year to 63.5%, which is its smallest outcome since mid-2014.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…