Home G10: Prelim Month-End Fixing Model: Short EUR/USD Signal Into September Fix – Citi
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G10: Prelim Month-End Fixing Model: Short EUR/USD Signal Into September Fix – Citi

What is the outlook for EUR/USD at month-end?

Here is their view, courtesy of eFXdata:

The preliminary output of  this  month-end fixing model point to USD buying against EUR, at month-end,  according to  data from  Citi.

“September 2020 Preliminary Estimate & Month-End Asset Rebalancing: The sharp losses in equities in September leads the asset rebalancing model to suggest a rotation into equities from bonds with a moderately strong signal at +0.8/-0.7 historic standard deviations respectively,” Citi notes.

The FX impact of the signals is likely to be USD buying vs EUR at month-end. In line with this, CitiFX Technicals is bearish EURUSD targeting 1.1500,” Citi adds.

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Kenny Fisher

Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.