Key Points:
JPY & AUD Heavy Selling: Reserve managers sharply cut JPY and AUD holdings, highlighting ongoing structural outflows from these currencies.
EUR Outlook Mixed: The OMFIF Global Public Investor Survey indicates reserve managers remain cautious on the EUR for now, but sentiment is shifting positively, suggesting more inflows could come.
While reserve managers held their USD allocations steady in Q1, they aggressively sold JPY and AUD and sharply increased CHF holdings. Signs of improving EUR sentiment may help support the euro’s share in reserves going forward.
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