LIVEDESK: FX Flows

• It has been a quiet start to the London FX trading session as volume-based momentum continues to fade from previous highs seen in late November. Flows have been fairly balanced with the exception of GBPUSD and AUDUSD, and USDCNH has seen a loss of interest from clients as news surrounding the RRR rate and Evergrande default calm down from Friday. Volumes are down 11% versus the previous five-day average.

• USDJPY and EURUSD are the top two flows in the G10 space today, both without any real bias to buy or sell. GBPUSD is another story though with a dear buying bias for the pound driven by retail and macro names. 1m vols have drifted down despite this pick-up in the client interest. Elsewhere AUDUSD proved to be an exciting pair today, with clients powering a net selling bias for the Aussie - but significantly influenced by bank names. Retail and macro names have conversely been buying AUDUSD), whilst asset managers remain fairly balanced.

• It was a comparatively diminished start to the week in the EM space, understandable given the recent flurry of news surrounding Turkey's rate decisions, Russia's potential invasion of Ukraine, the China RRR rate, and Evergrande among other stories. Asia interest has captured the focus for today, with very little action in Europe/LATAN1 EM. USDCNH, USDHKD and USDSGD are the top traded, almost purely by bank and macro names, but there seems to be no overwhelming buying or selling bias in any of those three pairs.

Via UBS