Prelim month-end fixing model points to USD selling vs EUR and GBP - Citi

Author: Adam Button | Category: Forex Orders

We're at the end of the month

We're at the end of the month

The preliminary output of this month-end fixing model point to USD selling against EUR and GBP at month end, according to data from Citi Research.

"The preliminary estimate of month-end FX hedge rebalancing flows points to a net USD selling need on Monday, 31 August, Citi notes. 

"The relative outperformance of US assets has likely left foreign investors under-hedged, giving a net USD sell-signal to increase hedges. This foreign rebalancing need is estimated to be -14bp of global passive index-following assets, -12bp of which are made up of equities...The FX impact suggests USD selling against EUR and GBP at month end," Citi adds.


For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose