Simply put: central banks (presumably a non-trivial source of support) are turning down the opportunity to purchase the euro at significantly cheaper prices. So, where to from here?
Friday, January 9, 2015
Central Bank EUR Reserves Plunge
IMF data released earlier this week revealed the largest ever quarterly decline in reserves held in euros. The more than 8% QoQ drop in holdings of the euro area's common currency easily surpassed the 6% fall back in 3Q2008 and coincides with one of the more severe quarterly falls in the EURUSD exchange rate that we have seen in some time.
Simply put: central banks (presumably a non-trivial source of support) are turning down the opportunity to purchase the euro at significantly cheaper prices. So, where to from here?
Simply put: central banks (presumably a non-trivial source of support) are turning down the opportunity to purchase the euro at significantly cheaper prices. So, where to from here?