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Month-end rebalancing continues to point to...>

FOREX
FOREX: Month-end rebalancing continues to point to USD sales:
-Citi sees USD selling and buying of all other currencies on 31 May: "Although
US equities have given up some of their month-to-date gains since we published
the preliminary estimate on 25 May, most other major equity markets have dropped
by even more since then. Together with gains in US fixed income, this has led to
greater US out-performance and strengthened the signal to sell USD. Poor
performance of Euro Area assets makes the buy EURUSD signal strongest at +1.7
standard deviations."
-Barclays' passive rebalancing model at month-end "points to dollar selling
against major peers. The signal is strong against EUR and GBP, moderate vs. CAD
and AUD, and weak vs. JPY."
-CACIB's model "expects month-end flows to be USD selling across the board, with
a strong USD sell signal against EUR".

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