Forex Flash: EUR/USD selling by asset managers halts after 5 straight weeks – UBS

FXstreet.com (Barcelona) - Within the G3, the euro was the weakest performer last week as the situation in Cyprus unsurprisingly led to continued outflows, though not at an accelerated pace. It appears investors were anticipating some form of resolution in any case, even though it would likely be at the eleventh hour or beyond. According to Research Analysts Gareth Berry and Geoffrey Yu at UBS, “Hedge funds led the selling while private clients also stepped up liquidation.”

Perhaps surprisingly, asset managers snapped a five-week selling run in the EUR/USD. The USD/JPY was also heavily sold, mostly by hedge funds as Kuroda's press conference failed to deliver anything new. “There will be even more pressure on BoJ rhetoric at next week's policy meeting, though we note that positioning for upside is very limited.” they add.