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๐Ÿ“ Speculation Of MoF FX Intervention Over N.Y. Thursday Session: UBS Strategy

In G10, the main story was in USDJPY in the Thursday New York session where clients speculated over whether the Japanese Ministry of Finance had intervened in the FX market after seeing the sharply negative price action in USDJPY once the day had started to slow down. There was no news or follow-through which would confirm this. Earlier in the day, Hedge Fund clients were better sellers of USDJPY, although the desk saw some two-way flow as Real Money was buying. After this price action, Hedge Fund clients then looked to buy leveraged downside structures in cross-NY pairs. Elsewhere in G10, the desk saw Real Money clients buying USD vs. NOK 8 SEK.

In EM, CNH was again the main theme and driver of flows during the NY session. The desk had strong two-way flows in USDCNH from Macro Funds. Some clients were looking to use this pullback in spot as an opportunity to reload topside expressions in USDCNH at more attractive levels than what were seen earlier in the week, There was also continued interest in gamma and shorter-dated downside hedges in case there is more pullback from this move in USDCNH. Macro Funds were also selling USDSGD and buying USDIDR on the day. Systematic clients were selling USDCZK and buying IJSDPLN during the NY morning trading session. - UBS Strategy



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