Month-end rebalancing flows point to moderate USD selling - Citi
What's the FX trade
Citi's updated estimate of this month-end fixing model point to moderate USD selling into tomorrow's fix.
"The signal has changed to a moderate USD sell. The strength of this month's signal is below the historical norm, measuring 0.4 standard deviations on average," Citi notes.
"The discrepancy between the JPY sell and buy-signals for other
currencies suggests that EURJPY, GBPJPY and other JPY crosses may also
move higher ahead of this month-end," Citi adds.