UBS Global FX Flows

EURUSD: The euro was net sold on the week. However, at only 1.5% of gross volume, the net outflow was not large enough to suggest any outright flight, and the lack of selling interest is largely consistent with price action through the period.

EURUSD itself was actually flat, suggesting the bulk of the flow occurred on the crosses. Hedge funds and asset managers were both net buyers of EURUSD on a cash basis, but their flow was just edged out by corporate and asset manager selling.

USDJPY, EURJPY: USDJPY net selling was quite heavy on the week as asset managers registered their strongest net selling week in six months. Hedge funds were also active
in liquidation on a cash basis. EURJPY net selling continued for the fourth straight week, also led by asset manager sales.

USDCHF, EURCHF: CHF buying was very light on the week, with moderate EURCHF selling further offset by USDJPY purchases. Surprisingly, asset managers were net buyers of USDCHF for the second straight week, but their EURCHF sales continued.

GBPUSD, EURGBP: GBP failed to rally as the currency was sold against both USD and EUR. Fears of a strong BoE response to sterling strength may have limited interest.
USDCAD, AUDUSD, NZDUSD: High-beta names were generally shielded from risk aversion through the week though turnover was quite strong. AUD flow in particular picked up as AUDUSD slipped through 0.75 after a fourth straight week of sales. Hedge funds and asset managers accounted for the bulk of the flow.

EURNOK, EURSEK, USDNOK, USDSEK: The Riksbank’s surprise easing step did not result in significant SEK selling, while NOK was the outperformer on the week as EURNOK had its strongest net selling week in over 18 months, led real money sales.

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