- BIS report shows increase in spot FX trading, dominated by investor and central-bank flows
- Fed minutes show some healthy debate
- China PMI rises modestly but below 5-year average
- Australian GDP gives the Aussie a boost
- US consumer confidence
The first trading day of September should be an indicative one for forex market sentiment, given that Tuesday was largely dominated by month-end flows in fairly light trading. This point is worth considering in light of the triennial BIS survey on the global forex markets released overnight, where there are two relevant observations. Firstly, within the reported 20% increase in fx volumes over the past 3 years, most of this has come from spot (48%). Secondly, in terms of investor type, most of this increase has come from “other financial institutions”, which include non-reporting banks, mutual funds, hedge funds and central banks among others. This underlines the impact such flows can have on spot fx. As such, a new month means new cash to be put to work and a new performance period for hedge funds...Read More
No comments:
Post a Comment