Category in FXWW News

EUR flows: Speculators short but big players still selling

Just catching up on interbank research after a 2 week break and the following factors are being consistently reported: Prime Brokers are reporting heavy speculative short positions amongst professional players, especially through the options market; Overall short positioning in the spot market is at significant levels; Net Fixed Income flows have been very EUR-negative and

Corporate and institutional flows will dry up from today

Many institutional and corporate players will be taking a full two week break from the FX market and with politicians also less likely to make any earth-shattering decisions during this period, any moves will be mainly speculative and driven by lack of liquidity. Overall positioning is at slightly below moderate levels, according to snippets of

Liquidity continues to be very poor and will only get worse

Since the beginning of last week, e-commerce dealers have been complaining about the lack of liquidity and the fact that it’s only going to get worse. Tonight’s FOMC statement will only serve to heighten the fear factor which will further detract from the liquidity pool. Wherever the stop-losses are, that’s where the market will gravitate

Regulator focus on Algos will lead to greatly reduced liquidity

Interbank e-commerce dealers have been reporting heavily reduced liquidity over the last 7-10 days and it’s not just the looming Christmas holidays which is responsible for this. The recent scrutiny into algorithms on trading platforms at big interbank players such as BarCap and Deutsche is not a one-off and dealers across the globe are bracing