23 Mar 2015
Bullish EUR/JPY put spread; despite risk on - BAML
FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch noted that USD selling did not trigger EUR buying last week.
Key Quotes:
"Although hedge fund, real money and official EUR flows were positive, they were statistically insignificant. Moreover, our corporate clients have been selling the EUR in five of the last six weeks."
"Despite the risk-on in FX last week, we continued seeing JPY buying from all our client groups. These flows support our recent trade recommendation to buy a 3m EUR/JPY put spread, as a continued fall in EUR/USD could weigh on risk sentiment given its positive correlation with equities."
Key Quotes:
"Although hedge fund, real money and official EUR flows were positive, they were statistically insignificant. Moreover, our corporate clients have been selling the EUR in five of the last six weeks."
"Despite the risk-on in FX last week, we continued seeing JPY buying from all our client groups. These flows support our recent trade recommendation to buy a 3m EUR/JPY put spread, as a continued fall in EUR/USD could weigh on risk sentiment given its positive correlation with equities."