UBS' FX flow monitor noted that GBP...........>

FOREX: UBS' FX flow monitor noted that GBP recorded the largest normalized

inflows in G10 last week, reversing from the prior 2 weeks of outflows, as the

May release of services PMI surprised to the upside.

- AUD saw inflows for a 4th week, with the largest daily inflows coinciding with

better than expected retail sales and GDP releases on Monday and Wednesday.

- JPY was net bought against both USD and EUR, while NOK and CAD also saw

inflows.

- On the other hand, EUR saw the largest net selling interest among the majors,

extending outflows to a 10th week, despite the currency strength as Italy

entered a phase of de-escalation.

- USD saw outflows despite decent ISM non-manufacturing data in May, while SEK

was sold with a moderate slow-down in services PMI.

- In EM, BRL and MXN continued to be the most sold currencies while CZK and ZAR

were most bought.