Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD rebounds modestly to 1.0930, US Dollar holds to gains
Premium
EUR/USD dropped for the second consecutive day on Monday. The correction from 1.1070 found support above 1.0900. The US Dollar rose across the board as bets on Fed interest rate cuts later this year pared. Ahead of the Asian session, markets seem calm with the US Dollar holding firm to recent gains.
AUD/USD steady around 0.6200 ahead of RBA minutes
Premium
AUD/USD rebounded modestly during Monday’s American session to the 0.6700 area, avoiding a daily close below the 20-day Simple Moving Average. A stronger US Dollar keeps the risks tilted to the downside. The RBA will release the minutes of its latest meeting.
Read More
The United States total net TIC flows fell below forecasts in February of this year, coming in at $197.6 billion, or $28 billion lower than the anticipated $225.6 billion forecast.
The Treasury Department report released on Tuesday noted that TIC flows indicate global investor confidence in the U.S. economy, as they track the movement of foreign investments in U.S. assets. It is thought that foreign investors have become more cautious since February, indicating a potential dip in market confidence.
The net TIC flows, which are calculated from both long-term and short-term transactions, provide insight into foreign investors’ willingness to lend or invest in U.S. government issued securities including Treasuries, corporate bonds, and stocks.
The February data reflects a decline in both long-term and short-term transactions. Net long-term transactions dropped to $47.5 billion, a decline of $6.7 billion from the previous month. This can be primarily attributed to outflows of $38.7 billion in foreign investments in U.S. corporate bonds in February. Furthermore, net short-term transactions dropped to a negative $250.1 billion, falling $21.6 billion from the previous month.
The decline in foreign investments in the U.S. economy may indicate that there is a general lack of global confidence in the U.S. market. This could lead to further decline in investments, potentially impacting the stability of the U.S. economy. The potential implications of this data should not be underestimated, however, the domestic demand for U.S. assets currently remains strong, suggesting a possible recovery in the near future.
