US TIC Flows – Talking Points
- The US recorded Total Net TIC Outflow of $8.1 billion and a Net Long-Term TIC outflow of $28.4 billion
- Treasury holdings by the Chinese dropped for first time in four months by $10.4 billion
- USD could face additional pressure going forward in light of the TIC data
The US Treasury released data on international holdings of US debt today which showed a Net Long-Term TIC outflow of $28.4 billion in March. The report compares to February’s numbers where inflows of $52 billion were recorded. Although the US Dollar had a muted reaction – likely overshadowed by auto tariff headlines – the TIC report could exacerbate downward pressure on the greenback. Also, disappointing US retail sales coupled with news of USMCA progress which sent USDCAD and USDMXN swooning weighed negatively on the US Dollar during Wednesday’s trading session.
DXY US DOLLAR PRICE CHART: 5-MINUTE TIME FRAME (MAY 15, 2019 INTRADAY)
China reduced their exposure to Treasuries by $10.4 billion, marking the first decline in US debt holdings since November. Speculation has stirred whether or not China is looking to dump Treasuries in retaliation of tariffs imposed by the Trump administration – commonly referred to as a “nuclear option” among market participants.
If the trend of China trimming its holdings of Treasuries continues, the retaliatory move could in theory put a drag on the US economy. Seeing less demand for debt could push yields and borrowing costs higher. Additional evidence of China dumping Treasuries in next month’s report expected on June 17 – could send a message to President Trump and the market that trade relations between the two countries remain tense and reaching a deal may less likely than currently expected.
Can you get luxurious from fx trading? The reply is if you go from canadian forex, and gradual forex, use algorithms in fxtrading, what is circulate in forex 1 greenback canadian, netdania forex, submit overloaded plus of the forex system indicators, and account the counselling fx strategy. We present win win all.
Top 10 problems you may need in life:
01. Espresso Machines review|
02. Gaming Keyboards review|
03. Gaming Headsets review|
04. Virtual Reality Headsets review|
05. Cordless Drills review|
06. Electric Keyboards review|
07. Gaming Mouse review|
08. Gaming Monitors review|
09. Gaming Laptops review|
10. WiFi Routers review|