Forex Flash: EM Central Banks selling EUR - Nomura

FXstreet.com (Barcelona) - Nomura strategists Jens Nordvig and Ankit Sahni note that the IMF released its “Composition of Official Foreign Exchange Reserves” (COFER) data for Q4 yesterday.

They see that the euro share of central bank reserves has continued to decline, despite the strong rally in the EUR during the quarter. They write, “This is likely to be a continuing headwind for the EUR, along with the weak growth story we have been highlighting in the past few months. We remain comfortable with our view for a grinding move lower in EUR.”