🇨🇭LIVEDESK: FX Flows

• USTs are bid, but the USD is shrugging off the fixed income rally and instead broadly trading higher across G10 and EM FX. Volumes have been light into a busy second half of the week on the economic calendar, with FX volumes 20% below the rolling five-day average.

• Flows show a small bias to buy USDs, mostly via real-money names and this is focused in the EUR and against EM FX with CNH and ZAR both seeing outflows (likely longs being trimmed there ahead of US CPI on Thursday). CHF is strong this morning as stops were likely triggered in EURCHF and USDCHF. Flows show a net CHF bought on Tuesday with no notable driver outside of fast-money positioning. Vols in EURCHF have been heavy in the front with supply mounting, although it is worth being wary of a break of the range to the downside.

• A move away from the supply of gamma could lead to a quick snap back. There has been no underperformance in CAD and NOK despite the decline in oil with the currencies following the general USD move.

• Most USDAsia pairs traded better bid during the local session - the Dollar was better supported globally overnight and during the London morning. The price action is similar to last month after weaker NFP data and ahead of the US CPI data (released Thursday).

• Profit taking is potentially happening again as USDKRW moves back towards pre-payroll levels around 1116/1117 in the lm. 1120/21 topside is the initial level from here to watch. Downside, 1106 is still the main support ahead of 1100.

• USDCNH bounced off the New York lows around 6.3875 and back up just shy of the 6.40/41 resistance levels. USDTWD is a bit of an exception today with local sellers both in the outright and the curve keeping the 1m around yesterday's New York closing levels.