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Citi's Prelim Month-End Estimate Points to Marginal USD Sales

FOREX

Citi's prelim estimates show a marginal need to sell USD again all others except the JPY at January's month-end.

  • They write that on balance they expect foreigners' needs to hedge US equity gains to dominate, but USD buying by both US and foreign investors to hedge US equities and US bond hedges neutralise this slightly, trimming the signal this month in all crosses except EURUSD.
  • The buy signal for EURUSD is led by poor Eurozone equity performance this month, which reduces non-EU investors' needs to sell EUR. At the other end of the scale, strong Japanese stock markets flag JPY sell signals vs. USD. As such, strongest relative signal is to buy EURJPY.
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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