Month-end flows expected to be EUR, USD positive; JPY, CHF and GBP negative
The London Fix on the last Friday of the month is usually a big event and today should be no different. Today’s flows are expected to be overall JPY, CHF and GBP negative whilst being positive for the EUR and the USD. I’ve read mixed reports regarding the CAD and AUD but the more reputable reports suggest that flows will be positive in both cases.
In the past, bank dealers used to be well positioned ahead of the event in order to benefit from these flows but in today’s new world order of ‘no prop trading’, it may be left up to hedge funds and Algos (and mugs like us) to pre-empt what’s going to happen 🙂