📝 G10FX Flows In Line With Typical Risk-Off Moves: UBS Strategy

USD flows were mixed last week. Hedge funds sold USD into the reciprocal tariffs announcement last Wednesday and the selling continued on Thursday.

However, fast money bought USD back on Friday. G10 flows were in line with the typical risk-off moves with hedge funds buying safe-haven currencies JPY and CHF, while selling high beta currencies like AUD and GBP. Outside of safe-haven bids, one flow worth highlighting is asset managers sold 4.5 standard deviations of SEK in two weeks. It is unclear if these real money investors just changed their hedge ratios, or took profits on their SEK longs. - UBS Strategy