Preliminary estimates of month-end FX hedge rebalancing flows point to more than usual USD selling
1 min readAnalysis from a US bank (which must remain unnamed)
- Says that their preliminary estimate of month-end FX hedge rebalance flows points to greater than average USD selling being needed need this month.
- Says the average signal strength
across all USD crosses measures 1.7 standard deviations and that signals of
this magnitude have occurred only 5% of the time since 2004
—
Meanwhile, the Asia session today is seeing USD buyers winning out, here is EUR/USD for example (the USD is up across the major FX board though):
