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Credit Agricole's model expects month-end.....>

FOREX
FOREX: Credit Agricole's model expects month-end FX flows to be neutral across
the board.
- Credit Agricole note that "global market risk-sentiment came under pressure
earlier this month weighed by market fears of escalating trade tensions between
the US and China. However, sentiment has since recovered and global equity
markets are modestly higher on the month. Meanwhile the USD has generally lost
ground this month, except against the JPY. Overall, US equity performance, when
adjusted for market capitalisation and FX performance, suggests month-end
portfolio-rebalancing flows are likely to be neutral across the board. However,
current signals may change, depending on moves in market risk-sentiment and
equity markets before month-end, especially after the FOMC meeting. Also note
that it is also the end of the quarter. US equity outperformance in Q3 suggests
quarter-end flows will be USD-selling."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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