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Citi Revise Month-End Model to See Moderate USD Buying

FOREX

Citi revise their month-end FX rebalancing model, with the sharp fall in equities over the past few days resulting in a switch to moderate USD buying vs. A sell signal at the prelim update.


  • The switch is driven by hedge rebalancing flows for both equity and fixed income investors being estimated as USD positive.
  • Although European equities are underperforming vs. US, USD buy signals are seen in all pairs as Citi see more foreign ownership of US equities and higher hedge ratios across Europe.

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