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18 Jun 2013
Flash: AUD, CAD reserve manager holdings coming soon - UBS
FXstreet.com (Barcelona) - The IMF announced that on June 28th it will reveal for the first time the size of reserve manager holdings in AUD and CAD, an unprecedented occurrence, that according to UBS FX Strategist Gareth Berry, could see some
some volatility in AUD/CAD depending on the holdings composition to be unveiled.
Berry notes: "The IMF already tracks the changing currency composition of reserve manager portfolios, with only USD, EUR, JPY, GBP and CHF holdings published separately. Holdings of all other currencies are bundled together in a single 'other' category."
That, up until now, has offers no insight into which 'other' currencies are preferred, Berry says, adding that "We have long suspected that AUD and CAD are the main components of the 'other' category, and while confirmation of this next week is not likely to affect pricing significantly, some AUDCAD volatility if one of the two emerges as a clear favourite may be seen."
some volatility in AUD/CAD depending on the holdings composition to be unveiled.
Berry notes: "The IMF already tracks the changing currency composition of reserve manager portfolios, with only USD, EUR, JPY, GBP and CHF holdings published separately. Holdings of all other currencies are bundled together in a single 'other' category."
That, up until now, has offers no insight into which 'other' currencies are preferred, Berry says, adding that "We have long suspected that AUD and CAD are the main components of the 'other' category, and while confirmation of this next week is not likely to affect pricing significantly, some AUDCAD volatility if one of the two emerges as a clear favourite may be seen."