Back
23 Feb 2015
FX flows reflect lack of strong conviction – BAML
FXStreet (Barcelona) - FX Strategists at BofA-Merrill, review the FX flow data, noting that this is the 2nd week in which light FX flows reflect lack of strong conviction.
Key Quotes
“Our proprietary flows up to Feb 20 show hedge funds selling EUR/USD, as concerns about tail risks in Greece seem to have dominated the dovish FOMC minutes.”
“Real money bought JPY and GBP against USD and EUR. EM FX flows were light. The official sector has been absent.”
“Our flows suggest that corporates may be behind the strong SEK, AUD and NZD, particularly against CHF and CAD last week.”
“Assuming Chair Yellen’s Congress Testimony does not surprise this week and Greece seals the deal with the rest of Europe, investors may keep their positions light, waiting for the next trend in FX.”
“Relatively to the last 12 months, our positioning indicators suggest that hedge funds and real money are long JPY and CAD —or not as short as a year ago. As technicals turn bullish USD, these indicators support USD/JPY and USD/CAD.”
Key Quotes
“Our proprietary flows up to Feb 20 show hedge funds selling EUR/USD, as concerns about tail risks in Greece seem to have dominated the dovish FOMC minutes.”
“Real money bought JPY and GBP against USD and EUR. EM FX flows were light. The official sector has been absent.”
“Our flows suggest that corporates may be behind the strong SEK, AUD and NZD, particularly against CHF and CAD last week.”
“Assuming Chair Yellen’s Congress Testimony does not surprise this week and Greece seals the deal with the rest of Europe, investors may keep their positions light, waiting for the next trend in FX.”
“Relatively to the last 12 months, our positioning indicators suggest that hedge funds and real money are long JPY and CAD —or not as short as a year ago. As technicals turn bullish USD, these indicators support USD/JPY and USD/CAD.”