- EUR/USD has seen very large Sovereign plays either side of a 1.2590/1.2730 range
- Big hedge funds have been buying USD/JPY; this could be partial profit-taking on existing shorts or it could be fresh longs
- Two other big funds have been selling GBP/USD and GBP/CHF
- More money continues to flow into the CHF from all directions
What I glean from all of this is the following (presuming you are a follower of flows); if you are putting on a risk-aversion trade then you should sell GBP/CHF wheras if you’re looking to put some risk back on then you should buy EUR/JPY.
All of this will of course change when the next big flow hits the market.