XE Market Analysis: North America – Jan 10, 2018

The dollar has kicked lower on reports about China, which is apparently considering downsizing its purchases of U.S. Treasury bonds. A Bloomberg report citing unnamed sources is the font of the story, and there hasn’t as yet been any official confirmation or denial. There is a sub-narrative in forex markets that the dollar’s unexplained weakness from mid December through to the first week of January may have been linked to an ‘underground’ view that China is considering reducing the proportion of its mammoth foreign currency reserves held in dollars.