TIC Data: More EURO Power?

The Event:

Release of Treasury Long Term Capital’s (TIC) long term purchase figures will occur at 8:00 AM EST on Monday, March 15th, 2010.


The TIC long term purchases release is a monthly economic event that measures the difference in value between foreign long term securities purchased by U.S. citizens and U.S. long term securities purchased by non- U.S. residents during the period. If it beats estimates it is considered good for the USD. Non U.S. residents buying U.S. securities is bullish for the USD since foreign currency must be converted into USD to purchase U.S. securities.

Trader Take:

This event can have variable effects on the EUR/USD pair. It is forecast to be down to 37.9 b down from 63.3b last release. The EUR/USD pair appears to have turned the corner on the upside with a weakening USD. A clear bottom formation is evident in the 1.3600 to 1.366 range. The Euro is gaining ground as the USD slips. There is around 1000 Pips of potential upside on this move. Time will tell if it pans out.

David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.