USD Talk

From the FXWW Chatroom: Despite the Fed being the first Central Bank to kick start the recent hawkishness, USD positioning continues to slide lower. Our corporate clients seem to be taking advantage of the cheap USD to buy the year’s low level. Month end corporate flows tend to benefit the USD, but our analysis suggests that this flow has been historically strong and has been accelerating.

EUR: Corporates have been buying the USD particularly against the EUR. This flow could point to some headwinds for further EURUSD upside.

AUD: HF were very active in all 3 regions buying AUD ahead of the RBA this week.

SEK: Both HF & RM investors were buying SEK ahead of the Riksbank meeting. SEK positioning continues to increase and is the largest position in G10.

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