📝 EUR Longs Closed Due to Weak China PMIs Supported USD: UBS Strategy

Rising US Manufacturing data in July, weak China PIM data and clients exiting EUR longs as a response to a dovish European Central Bank outcome contributed to a rising dollar. In G10, the desk saw real money buying NZDUSD and both real money and hedge fund clients buying AUDUSD, while models were selling NZDUSD.

In LatAm, the desk saw real money selling USDBRL and both types of clients buying USDCOP on the back of a technical retracement and the Columbian Central Bank holding rates. In addition, macros were selling USDMXN and buying USDCLP. In Asia, the desk saw real money selling USDTWD, while hedge funds and models bought USDCNH and USDTWD. - UBS Strategy