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