Forex Flash: Risk currencies on the defensive – UBS

FXstreet.com (Barcelona) - Regarding risk currencies, there wasn't much optimism as all were net sold, though not in significant volume. According to Gareth Berry, a Research Analyst at UBS, “The uniformity of flow suggests that investors will more willing to head into Q2 on a relatively defensive stance, especially as reasons to be risk averse, be it Eurozone issues or weak US/EM data, probably exceeded expectations.”

Nonetheless, asset managers were marginal buyers in the NZD/USD and AUD/USD, offset by flow from other client categories, which ultimately limited overall losses. NOK and CAD sales were the heaviest, pointing to ongoing fear that the 'AAA' block will continue to suffer from unwinding due to domestic woes, despite pressure to reallocate out of the Eurozone.