What sort of leverage is the hedge fund industry currently using

I’m just reading through some interesting industry research on the level of leverage used by 24 of the market’s biggest macro funds.

The average level used sits somewhere around 2.0, […]

By |July 22nd, 2014 4:20pm (Sydney Time)|fxww|0 Comments

Retail and Pro traders yet to take up slack from interbank market

Hearsay from the interbank market tells us that proprietary trading has now virtually disappeared from dealing rooms and in fact banks are also questioning their market-making activities in the […]

By |July 22nd, 2014 7:41am (Sydney Time)|fxww|0 Comments

Professional market turning cautiously bullish JPY

I have read a number of quite bullish JPY predictions from major banks over the last few days. Geo-political considerations are the main driver as well as presumedly large […]

By |July 21st, 2014 11:38am (Sydney Time)|fxww, JPY crosses, Trade Ideas|3 Comments

NZD: Likely to stay heavy on crosses as milk prices stay heavy

  • Industry research still suggests large inventories of milk powder in particular in China;
  • Geo-political tensions in Eastern Europe and the Middle East will keep risk-sentiment nervous;
  • The NZD is at close […]
By |July 21st, 2014 7:53am (Sydney Time)|AUD,NZD, fxww|0 Comments

BOJ: Stress need to focus on geo-political risks

Quite presciently, the latest BOJ minutes stress the need to pay attention to geo-political risks.

More from Reuters.

By |July 18th, 2014 10:24am (Sydney Time)|fxww|5 Comments

USD/JPY: Market chewing through heavy bids on interbank platforms

  • Large bids reported on the EBS almost every pip at current levels (101.15);
  • Barrier protection expected ahead of 101.00;
  • Japanese semi-official buyers rumoured to be on the bid also;
  • Large stops rumoured […]
By |July 18th, 2014 8:03am (Sydney Time)|fxww|0 Comments

Friday, risk-off day, FX focus on Yen crosses

  • The tragic events overnight will see more focus heaped on escalating regional conflicts;
  • Friday’s usually bring positional adjustments ahead of the weekend;
  • Pairs like AUD/JPY are looking technically toppy […]
By |July 18th, 2014 6:42am (Sydney Time)|fxww|0 Comments

JPY crosses still looking soft

Regional stockmarkets are lower this afternoon and the JPY crosses are still looking most likely to get the FX market moving.

NZD/JPY is sitting on it’s 50-dma at 88.05 and […]

By |July 17th, 2014 2:42pm (Sydney Time)|fxww, JPY crosses|0 Comments

AUD/JPY: Stay short for now, reverse on bigger dips

  • Very solid technical resistance now at 96.55;
  • Short-term market sentiment seems to have swung in JPY favour;
  • The RBA will continue to try and talk the AUD down;
  • USD/JPY is in sideways […]
By |July 17th, 2014 7:41am (Sydney Time)|AUD,NZD, fxww, JPY crosses, Trade Ideas|0 Comments

EUR/GBP still the strongest trend in the market

This pair is definitely oversold on a short-term basis but it’s still got quite a bit of downside potential until it reaches longer-term ‘neutral’ levels near .7500. Reports yesterday […]

By |July 17th, 2014 7:32am (Sydney Time)|fxww|0 Comments

AUD/USD: Decent selling interest near .9400

It looks unlikely that this level will be tested today unless of course the Chinese GDP data surprises significantly to the topside.

Hourly support levels start around .9330. Pretty hard […]

By |July 16th, 2014 9:36am (Sydney Time)|AUD,NZD, fxww|0 Comments

NZD falls after CPI data

New Zealand Q2 CPI came in at +1.6% YoY, which is lower than market expectations at +1.8%. This may influence the interest rate debate over coming months but I’m […]

By |July 16th, 2014 8:52am (Sydney Time)|AUD,NZD, fxww|1 Comment

Overnight re-cap: UK CPI got a Yellen at due to milk prices at a Portugese Bank

  • Higher than expected UK CPI saw cable bounce strongly off support levels at 1.7060. The bounce was extra strong as the market had been trying to trigger stops below […]
By |July 16th, 2014 7:21am (Sydney Time)|fxww|0 Comments

USD/AXY up across the board in Asian trade

USD/KRW is leading the way, up 0.7% at present, and the USD is having a good day against all emerging Asian currencies.

Still not enough to get the majors moving […]

By |July 15th, 2014 2:38pm (Sydney Time)|fxww|0 Comments

Hilsenrath: Yellen response to job market developments all important

“When Federal Reserve Chairwoman Janet Yellen presented her semiannual testimony to Congress in February the jobless rate was 6.7% and annual inflation was 1.2%. When she returns […]

By |July 15th, 2014 1:41pm (Sydney Time)|fxww|0 Comments

Cable: Support levels holding but………….

  • EUR/GBP has found decent buying interest on dips below .7950 from EZ corporates;
  • Macro funds were noted ‘short-coverers’ yesterday in the cross;
  • Bids were reported late yesterday in cable near 1.7070 […]
By |July 15th, 2014 8:04am (Sydney Time)|fxww, GBP crosses|0 Comments

AUD: RBA meeting minutes main event on today’s agenda

Positional adjustment ahead of some risk events was the main story overnight with the EUR making gains on the crosses particularly against the GBP. Lack of momentum is still […]

By |July 15th, 2014 7:36am (Sydney Time)|AUD,NZD, fxww|0 Comments

Cable: Macro stops building below 1.7055

A reliable Prime Brokerage source suggests that we could be in for quite a battle if cable trades down towards 1.7070. There are decent bids starting near there but […]

By |July 14th, 2014 8:04pm (Sydney Time)|Flows and Orders, fxww, GBP crosses|0 Comments