End of month flows expected to be significant
Equity markets are expected to be busy today with portfolio adjustments taking place and last-minute corporate flows in the FX market.
- USD/JPY: Opposing flows here with Japanese corporates selling USD/JPY but asset managers expected to be net buyers; overall expected to be mildly net negative for USD/JPY
- Yen crosses: Mainly to be driven by corporate flows and so expected to be net negative especially in EUR/JPY
- AUD/USD: Asset managers and real money accounts will be net sellers today but well reported buying interest, Sovereign and corporate, below .9675.
- EUR/USD: As above, asset managers and real money accounts are expected to be net sellers today