UBS Global Research reports that “Net euro selling over our books hit a 5-week high last week”.
This is hardly surprising given the massive news from Draghi’s press conference. The report for this week will show a new selling high again for this week, I would think. As I said on the morning I plonked in front of the screens following the ECB meeting, EUR was showing all the bounce of that legendary dead cat, and to sell it right now.
The lack of significant bounce has continued all of this week (so far) … its what happens when sellers just sit on the thing.
More (highlights) from the UBS “Foreign Exchange Flows” report:
- 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.
- 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.
(h/t and thanks for the report to you-know-who-you-are)