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FOREX: Rebalancing Models Look for Mild USD Sales, But Broadly Neutral Month-End

FOREX
  • Barclays look for weak USD sales this month against most majors, however the signal is neutral vs both the EUR and JPY. Their model cites slim gains month-to-date for US equities and an extension of the rally in global bond markets as Fed easing pricing steps higher.
  • Credit Agricole see most flows as likely neutral, with the strongest sell signal for USD coming vs. GBP. Their corporate flow model points to EUR sales for month-end, however given no firm signal from rebalancing, they issue no trade recommendation for August.

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