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Citi's Prelim Month-end Model Sees USD Buying vs. EUR

FOREX
  • They write that sharp losses for equities suggests a rotation into equities from bonds with a moderately strong signal.
  • US equities and bonds see the strongest inflow and outflow signals respectively.
  • On FX, their prelim estimate of hedge rebalancing flows points to USD buying in September.
  • The signal is strong by historical standards with equity hedge rebalancing flows driving 97% of the signal.
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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