Flows and Orders/FXWW News

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 🙂

  1. Aren’t dealers still allowed to do intraday prop trading? I thought the regulations were only for certain asset classes like equities, but not for FX since the market is unregulated.

  2. Depends on bank license Milan, but very few banks incl investment houses have in-house prop traders any more. Sure dealers take on a bit of risk but peanuts compared to what used to be the case.

Leave a Reply

Your email address will not be published. Required fields are marked *