🇨🇭LIVEDESK: FX Flows

NY Open:

• It has been a quiet start to the London session as equity markets in Europe opened soft ahead of Jackson Hole getting underway on Thursday. FX price action is choppy, but participation is light with flows showing FX volumes down 25% on Wednesday with the notable flow being USD selling against both GBP and JPY, while position squaring in EM has seen real money driving better USD buying there this morning.

• EURCHF continues to trade positively and we've seen gamma paid up on the move higher, with the skew bid in tandem - been better buying of EUR crosses with EURCHF and EURJPY demand. The desk has seen decent selling of INR from macro names, as new daily covid cases in India hit a one month peak.

• In CE3, HUF looks to have run out of momentum, with some macro buying of EUR and USDHUF causing spot to stall around current levels.

• Despite a few attempts to test 20.20 during the overnight session this week, USDMXN has traded well bid through New York sessions. Flows on the week have been net better buyers, but the client mix has been more skewed towards retail and bank names than the usual institutional interest.

• The desk has seen limited fading interest from hedge fund names with USDMXN at these levels. From here I'm watching 20.20 for support vs 20.50 on top. In FX swaps, cross-currency has washed out much of the TIIE move over the past few sessions. Flows have been mixed with better RHS month-end interest offset by some early LHS IMM rolls.