LIVE MARKETS-Weak USD selling signal into month-end - Barclays
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WEAK USD SELLING SIGNAL INTO MONTH-END - BARCLAYS
Barclays says its month-end rebalancing model is indicating a weak dollar-selling signal against most major peers into month-end, with neutral signals against the euro and yen.
The model provides an indication of month-end rebalancing FX demand from portfolio managers who want to maintain currency hedges, based on the monthly performance of foreign and U.S. equities and bonds.
"Overall, both US bonds and US equities have registered marginal month to date gains, with the large market cap in the latter dominating our month-end model and inducing a weak dollar-selling signal against most majors," Barclays' Sheryl Dong writes.
"The relative outperformance in EA (euro area) and Japan bond markets and their currencies against the dollar offset weak selling pressure on the dollar against the EUR and JPY, making the corresponding signals neutral," Dong adds.
(Samuel Indyk)
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EARLIER LIVE MARKETS POSTS:
STOXX DIPS, RENEWABLES DRAG CLICK HERE
EUROPE BEFORE THE BELL: GIVING BACK GAINS CLICK HERE
THE 'WHY' MATTERS FOR RALLIES, AND RATE CUTS CLICK HERE
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