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Forex Flash: TRY remains the most popular currency for toshins - Nomura

FXstreet.com (Barcelona) - Three major life insurance companies released their financial results for FY12 yesterday and currency hedge ratios were slightly lowered by all three lifers from last September, notes Nomura strategist Yujiro Goto.

Mr. Goto notes: "Retail investment in currency selection-type toshins recorded a net purchase for the 14th consecutive month in April, according to Lipper-Japan. The amount of net purchases decelerated to JPY167bn (USD1.7bn) from JPY201bn in March."

"TRY was the most popular currency of choice for currency selection-type toshins for the second month in a row. TRY
attracted JPY94bn (USD0.9bn), recording its biggest monthly net purchases. BRL also accelerated to JPY88bn from JPY77bn. Net purchases of MXN slowed to JPY17bn from JPY22bn while the flow is still higher than the historical average" he added.

By contrast,Yujiro notes that retail investors "kept selling AUD via currency selection-type toshins for the sixth month in a row, though the selling slowed from the previous month (from JPY47bn to JPY17bn)." The reduction in yields down under, according to the analyst, "encouraged Japanese investors to shift from AUD into EM currencies, in our view" he said.

Forex Flash: Too early to expect a sustained appreciation in the greenback - BNZ

As Currency Strategist at BNZ Mike Jones notes, “we’ve seen the USD make a few false starts before, as periods of US optimism briefly compel the market to price an end to Fed easing. We need to be cautious about believing this time is any different,” the analyst says.
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Forex: Bearish developments on EUR/USD weekly chart worth watching

The EUR/USD finished the day down 50 pips at 1.2880. It was a busy economic release schedule during the European session, with a number of GDP figures due out which for the most part came in below expectations. However, data out of the US also missed with the NY Empire Fed print coming in at -1.43 vs. 4.00 estimates, and Industrial Production coming in at -0.5% actual vs. -0.2% estimate.
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