It's almost June

It's almost June

Citi's month-end rebalancing model flags a strong USD sell signal against EUR and GBP at this month-end

"Our Asset Rebalancing Model notes a rotation from equities into bonds at May month end. The signal is moderately strong coming in at -1.4/+1.3 historical standard deviations (hist. std. dev.) for equities and bonds respectively.

The FX impact notes selling of USD against EUR and GBP at month end," Citi notes.

Typically, month-end FX re-balancing flows is felt most going into the 4pm London fix on the last trading day of the month.

For bank trade ideas, check out eFX Plus. This week only, get a free week here.