Something to ponder:
Interpretation:
More money is pouring into Australia = AUD Bullish
Large Money is pouring into Canada = Very CAD Bullish
Japan is putting their money away from Japan = JPY Bearish
Large Europe investments into UK = very EURGBP Bearish
Europe is net Investing into USA = EURUSD Bearish
Large US investments into UK = very GBPUSD Bullish
Of course this covered from Jan to date so the effect is gradual.
UK is the best performer. Both Eurozone and US are putting their money into UK companies. Japan has been seen acquiring UK companies also. It has been noted that UK currently has the better economic atmosphere while US is falling in the least wanted side.
QuoteDisliked[IFR Forex Watch]
[SQUAWK BOX]
[20:49 FOREX: M&A Activity - M&A Inflows Support GBP & CAD] San Francisco,
November 7.
Cross Border M&A Flows: All Cash and Cash and Stock Deals
Year-to-Date ($mln)
Inserted CodeAustralian Acquisitions 97,841.9 Australian Targets 110,443.2 Net inflows to Australia 12,601.3 Canadian Acquisitions 142,849.3 Canadian Targets 210,938.0 Net Inflows to Canada 68,088.7 Japan Acquisitions 121,502.1 Japan Targets 111,968.5 Net Outflows from Japan 9,533.6 UK to Eurozone 26,699.0 Eurozone to UK 70,870.5 Net Eurozone to UK 44,171.5 US to Eurozone 74,828.6 Eurozone to US 69,106.6 Net Eurozone to US 5,722.0 UK to US 33,565.7 US to UK 57,247.5 Net US to UK 23,681.8
M&A activity remains strong between the Eurozone and the UK with over $44 bln in net outflows from the Eurozone which remains EUR/GBP bearish. Net outflows from the US to the UK are over $23 bln, with the net flows to the UK from the US and Eurozone over $67 bln and contributing to sterling strength through much of the year. Net Eurozone to the US are over $5 bln for the year. Canadian M&A activity is strong with net inflows going to CAD at over $68 bln and at new highs and contributing to the strength of the currency as emphasized by BoC Dodge recently. Flows for Australia have now reversed from net outflows to net inflows of $12 bln, becoming an AUD positive. Japan continues to be amongst the largest overall M&A activity but with net outflows seen neutral for Japan and the JPY and worth $9 bln so far this year or less than $1 bln per month.
Net outflows from Australia rose from $7 bln in Q1 to over $20 bln at the end of Q2, but have now reversed to net inflows of $12 bln. Canadian inflows have risen from $5 bln in Q1 to $33 bln in Q2 to over $67 bln currently. Japan outflows have risen from over $5 bln in Q1 to over $9 bln in Q2 stabilizing to levels around $9 bln year-to-date. Eurozone flows to the UK have edge up slightly from around $33-$34 bln in Q1 to $38 bln in Q2, and up to $44 bln currently, impacting flows for EUR/GBP. Flows are now moving to the US from the Eurozone at over $5 bln, from inflows to the US of $1.2 bln at the end of Q2 and reversing from net US flows to the Eurozone at $3.4 bln at the end of Q1. US flows to the UK are over $23 bln, up from $19 bln in Q2, underpinning GBP.
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Also updated on www.ifrmarkets.com
Interpretation:
More money is pouring into Australia = AUD Bullish
Large Money is pouring into Canada = Very CAD Bullish
Japan is putting their money away from Japan = JPY Bearish
Large Europe investments into UK = very EURGBP Bearish
Europe is net Investing into USA = EURUSD Bearish
Large US investments into UK = very GBPUSD Bullish
Of course this covered from Jan to date so the effect is gradual.
UK is the best performer. Both Eurozone and US are putting their money into UK companies. Japan has been seen acquiring UK companies also. It has been noted that UK currently has the better economic atmosphere while US is falling in the least wanted side.