Forex Flash: Further downside potential in gold short term - Nomura

FXstreet.com (Barcelona) - Nomura continues to argue that for Gold to find a bottom, "we need to see ETF holdings head higher before calling the low, as this has not yet occurred there could be further downside potential in the short term" Nomura notes.

Nomura adds: "We are flat in the yen but would still be inclined to buy a further dip in yen crosses but look for JGB yields to stop going higher and volatility to come down to get a clear signal. In addition, we have restructured our EUR/USD exposure via options and have initiated a new relative value trade, essentially positioning for CAD underperformance."