Firmer EURUSD positioning not an independent FX event
In the latest Global Positioning Summary (Mar 26th), our Global Asset Allocation team note that based on ETF flows and EURUSD CFTC figures, Europe is now seen as a ‘safe haven’, where active positioning is quite strong. Our own EURUSD flow data for asset managers would concur with this characterisation. Regardless of cause, such sustained unlevered flows should be seen as vol-compressive. However, despite perceptions trading ranges have picked up, and cross-market volatility should not be discounted.
Read the full report: UBS