- Central banks are looking beyond the dollar to grow their foreign exchange reserves for the first time in a decade. Rising trade tensions, and a recovering European economy bode well for the euro making a stronger case for central banks to diversify into the monetary union's currency.
- Approximately 64% of fx reserves are held in dollars, followed by euros at 20%, and the yen and pound sterling each commanding 4.5%. The euro's share of global currency reserves fell from 28% back in 2009.
- “A lot of countries around the world are turning to Europe for increased partnership in trade,’’ says Jens Nordvig, who was Wall Street’s top-ranked currency strategist 5 years in a row. “..The bottom line is this trade stance the U.S. has now is not helpful in making the dollar attractive for central banks that hold billions in reserves."
- ETFs: UUP, FXE, EUO, FXY, FXC, FXA, YCS, FXB, UDN, CYB, FXF, ERO, CNY, USDU, JYN, GBB, DRR,
- Now read: This Next Leg Lower In The U.S. Dollar Could Be The Macro Trigger We've Been Waiting For
Original article