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Decoupling between US equities and prices – BAML

FXStreet (Barcelona) - The BofA-Merrill Lynch Team, shares the fund flow data into US equity, noting that absence of fresh flows might lead to further correction.

Key Quotes

“Weekly flows: bond inflows ($5.6bn) vs equity outflows ($6.0bn)…extending YTD trend of $121bn bond inflows vs meager $1bn equity inflows”

“Big decoupling in recent weeks between US equity flows and prices (new highs today)...correction risks will grow in absence of fresh inflows in coming weeks”

“TIPS funds: huge $1.4bn inflows (1.8% of AUM = largest inflows in 5 years”

“YTD winners & losers: winners have been EU/JP equities and credit (HY & IG); losers have been US/EM equities, money-markets and bank loans”

Gold back in red circa $1192, US data awaited

Gold prices on Comex snapped its recovery and fell back into losses as the gold bulls preferred to remain on side lines ahead of key US data – durable goods orders due later in the NA session.
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EUR/CHF backs-off from session highs

The EUR/CHF ran into offers close to 1.038 after the SNB’s Jordan at the AGM said the CHF could appreciate further due to Greek crisis.
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