🇨🇭LIVEDESK: FX Flows

• A quieter morning as equity markets are off the lows and most FX pairs node quite rangebound. Flows on an aggregate basis skewed toward USD buying with larger flows vs. EUR, macro funds were the main participants, likely reducing. The EM space is much lighter with few signs of some real money USD selling seen earlier in the week. A bit attention on Scandies, but little in terms of Flow today. The desk saw demand for EURNOK earlier in the week and it is likely the move in oil that is weighing on NOK

• USDJPY vols have quieted down following the rebound in equity markets and spot into the NY close yesterday. 1m trading 5.7 again here and while the desk has seen some interest for downside gamma, clients just don't seem to have the lower USDJPY view, and consequently interests for 1m and out have been quite limited over the past couple of days. Cross-JPY is particularly offered today, having had a sharp reprice higher yesterday. Overall though, it would seem from these levels vol would still have more room to continue on the uptrend given the recent increase in vol in equity (and crypto) markets

• EURNOK vol continues to grind higher and the market is a bit nervous. There are buyers of gamma and 1m is up around 0.3 to 8.7. A break higher would be relatively tricky and market makers derive shorter quite quickly.

• USDMXN flows so far today have been slightly better selling by model accounts which is in line with recent flow themes. FX swaps open heavy with local rates also recovering from Wednesday's sell-off. Profit-taking from hedge fund accounts seems to be adding to the pressure in the 6m area.