It’s not only the end of the week but also the end of the month and this means portfolio re-balancing.
According to the models that Barclays uses, this implies strong USD sell signals against quite a few currencies:
Here is their view, courtesy of eFXnews:
“The passive rebalancing model at month-end points to generous amounts of USD selling against major currencies.
Equity markets edged substantially higher across developed economies as a result of reduced risk aversion and support coming from monetary policy easing by major central banks.
US equities posted the largest increase in market value relative to the rest of the world, due to the large size of the American market, while gains in bond markets were moderate and the USD remained practically unchanged on an effective basis,” Barclays clarifies.
Barclays month-end fixing model provides signals for trading FX on the last tarding day of the month. The model provides signals from ‘+++’ through neutral to ‘—‘ to indicate the strength of this month’s signal relative to its own history.
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