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12 Jun 2013
Flash: More thoughts on the unwind - Nomura
FXstreet.com (Barcelona) - Nomura strategists Jens Nordvig and Ankit Sahni note that overall, markets have recently been very volatile, often lacking clear fundamental catalysts.
They feel that the majority of moves seem related to positions being unwound and the unwinding process has already gone through several phases in quick succession, which has made the market moves very complex. They write, “Given the size of inflows to EM since September 2012, the reversal process could well have further to run, and we are inclined to wait on the sidelines for the time being. Our fundamental, strategic views are unchanged, especially with regard to the potential for broad-based USD gains by end-2013. We will look to add exposure once markets settle.”
They feel that the majority of moves seem related to positions being unwound and the unwinding process has already gone through several phases in quick succession, which has made the market moves very complex. They write, “Given the size of inflows to EM since September 2012, the reversal process could well have further to run, and we are inclined to wait on the sidelines for the time being. Our fundamental, strategic views are unchanged, especially with regard to the potential for broad-based USD gains by end-2013. We will look to add exposure once markets settle.”