Bank of America Global Research discusses the recent G10 spot liquidity.
"The spot liquidity of the European currencies that were mostly affected in the early stages of the Ukraine crisis (SEK, NOK, and EUR) have improved meaningfully since early March. JPY spot liquidity has worsened the most in G10 on the back of sharp depreciation in April. GBP, CHF and AUD spot liquidity saw modest deterioration. CAD and NZD spot liquidity have remained largely unchanged," BofA notes.
"The mixed spot liquidity picture likely reflects the presence of multiple FX drivers, while the European currencies may have adjusted to a more volatile macro backdrop from a spot liquidity standpoint.
The G10 FX spot liquidity ranking saw little change: EUR and JPY have swapped places but remain the most liquid USD crosses. They are followed by CAD, GBP, AUD, CHF and NZD, with the Scandies remaining the least liquid-SEK is still less liquid than NOK," BofA adds.