9 Mar 2015
Fund flows: Profit taking in EUR bullish for EUR/JPY – BAML
FXStreet (Barcelona) - FX Strategists at BofA-Merrill Lynch, share the fund flow data into FX and Eurozone equities, noting that the profit taking seen in EUR might be bullish for EUR/JPY.
Key Quotes
“Following a further drop of EUR/USD to an 11-year minimum, our proprietary flows through March 6th reflect profit taking. Such flows could trigger a short-term upward EUR correction, particularly against the JPY, for which our flows and technical analysis have just turned negative.”
“The EPFR data shows strong and accelerating demand for Eurozone equities since the ECB announced open-ended QE. Equity flows are consistent with a weak Euro for now, as ECB easing is the trigger for both. However, if the equity market turns out to be right, the long-term Euro equilibrium will be above current levels.”
“Our proprietary flows show hedge funds selling EM FX in all regions last week. The EPFR EM flows are still positive, but reflect mostly bond flows. Our hedge fund flows are particularly bearish for CLP in LatAm, MYR in Asia, and TRY, ILS and RUB in EMEA.”
Key Quotes
“Following a further drop of EUR/USD to an 11-year minimum, our proprietary flows through March 6th reflect profit taking. Such flows could trigger a short-term upward EUR correction, particularly against the JPY, for which our flows and technical analysis have just turned negative.”
“The EPFR data shows strong and accelerating demand for Eurozone equities since the ECB announced open-ended QE. Equity flows are consistent with a weak Euro for now, as ECB easing is the trigger for both. However, if the equity market turns out to be right, the long-term Euro equilibrium will be above current levels.”
“Our proprietary flows show hedge funds selling EM FX in all regions last week. The EPFR EM flows are still positive, but reflect mostly bond flows. Our hedge fund flows are particularly bearish for CLP in LatAm, MYR in Asia, and TRY, ILS and RUB in EMEA.”