CORAX - Deutsche Bank currency flows: Hedge funds buy USD against G10 as real money selling eases

Research evidence excerpt

CORAX - Deutsche Bank currency flows: Hedge funds buy USD against G10 as real money selling eases

Deutsche Bank

Research

Global Foreign Exchange Date

29 June 2026

CORAX - Deutsche

Bank currency flows

Hedge funds buy USD against G10 as

real money selling eases

Rohini Grover, Ph.D.

Our recent EPIC+ report highlighted increasingly defensive positioning across G10

Strategist

currencies. While the reopening of the Strait of Hormuz and the subsequent decline +44-20-75475907

in oil prices helped ease some of the geopolitical risk premium, our latest CORAX

indices—based on globally aggregated electronic spot flow data—suggest Christabel Charles

Research Analyst

investor behavior remains cautious. Over the past two weeks, hedge funds have

continued to buy USD against G10 currencies and have also stepped up dollar

buying against EM currencies, particularly CNH and PLN. In contrast, real money

investors remain USD sellers across both G10 and EM, although the intensity of

those outflows has moderated compared with last week. Beyond FX, hedge funds

have continued to scale back their gold longs, while real money flows point to

increased selling.

In G10, real money and hedge fund flows remain divergent, though both have

adjusted somewhat from last week. Real money flows are still risk-positive, but

buying has become more selective after last week’s broad-based demand.

Investors continue to sell USD, with strong buying in GBP and firmer buying in AUD,

while buying in EUR, SEK, NZD and CHF has moderated. Commodity FX flows are

more mixed, with increased selling in CAD and NOK. JPY selling has eased, but the

broader USD selling bias remains, albeit less pronounced.

In contrast, hedge funds continue to exhibit a defensive stance, with flows

remaining structurally similar to last week.