Net euro selling over UBS’ books hit a 5-week high last week as ECB President Draghi indicated the strong euro’s disinflationary impact “will have to be addressed”. The following are UBS’ analysis for last week proprietary flows for EUR/USD, USD/JPY, GBP/USD, and a selection of other FX pairs as reflected by hedge funds, assets mangers, and corporate clients in UBS’ books.
EURUSD: Selling by our asset manager, hedge fund, and corporate clients left the pair net sold overall.
USDJPY, EURJPY: Yen was net bought, especially by leveraged accounts.
USDCHF: Hedge funds were buyers, but asset managers and corporates maintained selling pressure, leaving the pair net sold in aggregate.
GBPUSD, EURGBP: For a change, there was no selling of the cross by hedge funds last week, breaking an uninterrupted trend that had endured for 7 weeks.
USDCAD: Activity was light again, with asset managers accounting for most of the gentle buying of Canadian dollars.
AUDUSD: The pair itself was net sold for the 4th week in a row, even though activity on the crosses resulted in Aussie inflows overall.
NZDUSD: Net sold for the 8th week in a row, although residual longs maintained by the hedge fund community are still not fully eroded.
