US Dollar Exchange Rate Fell Off After News From China
The US dollar sharply weakened against the major currencies after Bloomberg reported that officials in China recommended slowing or suspending purchases of US Treasury bonds. According to Bloomberg, officials conducting a review of foreign exchange reserves, came to the conclusion that the US government bond market is becoming less attractive compared to other assets.
The Japanese yen remains the strongest major currency for the week. The decision of the Bank of Japan to reduce purchases of bonds caused an increased assumption that the central bank is preparing to reduce its incentive measures.
The US import price index rose by 0.1% in December, below the forecast of +0.4%. The building permit in Canada fell by 7.7% in November. Industrial production in the UK increased by 0.4% mom, and by 2.5% yoy in November.