USDCAD selling has been seen from real money names on Tuesday. Amongst hedge funds, the desk has seen interest to buy JPY against both the greenback and AUD ahead of Kazuo Ueda's first BoJ meeting this week. In the options space, vols in EURUSD have continued their slightly bid tone this morning. There has been demand for outright topside EURUSD in the front end and also some demand for topside RKOs a little further forward in the curve.
USDCNH buying from the fast money community has been the main theme in EM on Tuesday. CNH has traded better offered with risk soft in Asia. Renewed concerns over U.S.-China tensions gave overshadowed an improving economic picture in Chia.
- UBS Strategy
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