Forex Flash: Central banks diversification an ongoing drag on euro performance - Nomura

FXstreet.com (Barcelona) - The IMF released on December 31 its "Composition of Official Foreign Exchange Reserves" (COFER) data for Q3. As Nomura FX strategist Jens Nordvig notes, "the euro share of central bank reserves has declined notably over the past few quarters, with this effect going beyond valuation effects from a weaker euro and volatility induced by Swiss National Bank flows." The trend suggests, according to Mr. Nordvig, "that central banks are now gradually diversifying away from the euro, and if this trend continues, it will be an ongoing drag on euro performance."