The index represents the difference between the overall US securities purchase and overall purchase of foreign long-term securities by American investors.
The index takes into account short-term securities on the contrary to Net Long-term TIC Flows.
If the indicator shows the increase not less than $40 billion per month, it is a positive sign for the US economy and the Dollar. The level higher than $80 billion demonstrates very high degree of interest to the US assets on behalf of the foreign investors.
Effect of market
As a rule it has a significant influence on the market but it varies from month to month.
The positive balance growth reflects the capital inflow into the country, making it favorable for the Dollar.