More on the month-end flows – Barclays ” … a large rebalancing away from the USD”

Comments from Barclays on the month-end (are we there yet? …Oh, thats my comment, not Barclays, BTW).

Says the big gains in US equities in August, along with gains in fixed income

• “imply a large rebalancing away from the USD, according to our model”

Goes on to say:

• “The strength of the USD selling signal is strong across the board, with the one versus the JPY a touch weaker”
• “In the past, when rebalancing signals have been uniformly as strong (2 or 3 pluses or minuses), this has tended to yield a higher signal to noise ratio from the model (higher information ratio) compared to the longer sample for the model”

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My earlier post about month-end (includes bonus rant): Month end flows to favour the Euro … but will it be enough to reverse the trend lower?