I’m just reading some very thorough interbank research on who the likely winners and losers are likely to be over the next few weeks, providing nothing significant changes in the market.

  • Yen selling is likely to remain dominant, led by $5 billion worth of Toshins and aided by Japanese institutions unwinding long-term hedges. An increasingly bearish retail community also has the potential to add to Yen selling.
  • CAD selling in recent weeks has been led by hedge funds and real money funds, and this selling is expected to continue for at least 2 more weeks.
  • GBP selling is likely to increase as the exodus out of UK Gilts increases.
  • USD, EUR, NOK, and AUD are likely to benefit from inflows.
  • Latam to outperform in emerging markets.

Sounds like we should still be buying dips in the Yen crosses.