1 Jul 2013
Flash: USD/JPY in focus from asset managers – UBS
FXstreet.com (New York) - As certain Fed members attempted to tone down expectations of early tightening and with quarter-end looming, clients displayed very little appetite to change overall positioning, notes Geoffrey Yu, an analyst at UBS.
“As such, no currency showed any meaningful flow in either direction but the dollar was still flat - a sign that investors were not willing to price out tapering in the near future either.” Yu adds.
The euro managed to ignore some side issues and was firmly bid by hedge funds, though asset managers chose to reduce slightly. Meanwhile, the USD/JPY was also favored, led by asset managers and corporate quarter-end buying (second strongest weekly flow this year). The EUR ended the week as the top performer within G10, though there is still plenty of ground to make up after more troubling months in April and May.
“As such, no currency showed any meaningful flow in either direction but the dollar was still flat - a sign that investors were not willing to price out tapering in the near future either.” Yu adds.
The euro managed to ignore some side issues and was firmly bid by hedge funds, though asset managers chose to reduce slightly. Meanwhile, the USD/JPY was also favored, led by asset managers and corporate quarter-end buying (second strongest weekly flow this year). The EUR ended the week as the top performer within G10, though there is still plenty of ground to make up after more troubling months in April and May.