Long-Term Holdings Little Changed
- After some volatility in recent months, net inflows of long-term portfolio capital totaled $9.8 billion in February.
- Private purchases of U.S. long-term securities were well balanced in February. Foreign private investors added modestly to their holdings of U.S. Treasury securities, agency securities and corporate bonds. Foreign holdings of U.S. equities remained constant on balance during the month.
Financing Current Account Deficit Is Not Problematic
- Foreign holdings of short-term assets (i.e. assets with maturities of less than 12 months) were also little changed. Total portfolio inflows totaled only $4.1 billion in February.
- Through the monthly volatility, the United States is having little difficulty financing its modest current account deficit. If U.S. interest rates rise later this year, the U.S. dollar should strengthen further versus most currencies.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.