By Trang Nguyen, THETAKEAWAY: U.S Net Long-term TICFlows were $10.1 in February > International Demandfor U.S. Financial Assets Slowed > USDPares Gain The U.S. Net Long-term International Capital (TIC) Flows unexpectedly decelerated in February, suggesting that international investors have curbed their demand for U.S. financial assets on optimistic signs in Eurozone. Taking into account transactions in both foreign and U.S. securities, the net long-term TIC flows registered a rise of $10.1 billion in February compared to a upwardly revised gain of $102.4 billion in the previous month. Meanwhile, economists anticipated the reading of $42.5 billion. Inflows of long-term fund toward U.S. assets in the month was not to the same magnitude seen in January as the European debt crisis showed signs of easing that reduce U.S. assets’ attractions to foreign investors. In sum, the net foreign acquisition of long-term securities, change in foreign holdings of short-term U.S. Treasuries and banking flows totaled $107.7 billion in February, U.S. Department of Treasury reported today. Of this, net foreign private inflows were $86.9 billion and net foreign official flows were $20.8 billion. The print was more than triple consensus forecast of $107.7 billion from the Bloomberg News survey. January net purchases were downwardly revised to $3.1 billion from $18.8 billion initially reported. EURUSD 1-minute Chart: April 16 ,2012 Chart createdusing Strategy Trader – Preparedby Trang Nguyen U.S. dollar gains ground versus most of its major peerexcept its Japanese trading partner in early North American tradingsession today. However, the greenback trims gain following the U.S.net TIC Flows report. The TIC flows are seen by most participantsas the Government resource for offsetting the current tradedeficit. The lower-than-expected net long-term TIC figures todayshortly sent the reserve currency lower than major currencies. Asseen from the 1-minute chart EURUSD chart above, the singlecurrency climbed approximately 20 pips from 1.0340 to 1.0360 afterthe report. --- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com To contact Trang, email firstname.lastname@example.org
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