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Barclays See Broad-Based USD Selling Into Nov Month-End

FOREX
  • On month-end FX rebalancing, Barclays write that their model points to broad-based USD sales across G10 for November month-end.
  • They specifically point out that the signal contrasts to the previous three months, and is driven mainly by the significant rally in the global equities and bonds.
  • In addition, they write that the sharp recovery in US equities will likely trigger more "re-balancing" needs to sell dollars at month-end.
  • They add a reminder that trading earlier (a few days before month-end) improves the model's performance, suggesting that flows are now spread over the week before month-end.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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