🇨🇭LIVEDESK: FX Flows

• A clear USD selling bias so far on Tuesday as both macro and real money accounts chase this USD move lower amid a positive session for risk sentiment. The has seen net USD sold by macro and further more from real money accounts, with volumes up 20% on Monday.

• Commodity currencies led gains with AUD buying from macro and real money buying of CAD. EUR shorts are being unwound Tuesday and the desk has seen fast money chasing the move with gamma buyers of 1-2w topside and the skew trading lower with lm RR at 0.1 from 0.4 last week. Elsewhere G10 vol curves remain heavy on positive risk sentiment, the USD/JPY rally is stalling as US yields consolidate around current levels, but the team continue to see macro buyers and some retail closing shorts outgoing through. Despite the move in GBP, there has been limited participation on the way up and flows remain light - note the desk continues to see gamma demand for the BoE meeting (November 4) with the event weighting around 35bp in both GBPUSD & EURGBP.

• USDCNH flows are dwarfing the rest of EM early Tuesday with spot trading down to 4 month lows, with flows showing both real money and macro selling close to $300m amid a mixture of stops going through and some fast money chasing the move - downside gamma buying as seen in the vol curve bid, with skew performing in both directions given the low vol base. A continuation of the buying in Asia of both THB and KRW, with equity outperformance driven by tech keeping KRW bid, while THB shorts continue to be unwound. CEEMEA flows have been light.