Signal selling USD weak to the end of Barclays

Barclays said the model of the end of the month ending showed a weak dollar sales signal to most of the main colleague to the end of the month, with a neutral signal to the euro and yen.

This model gives an indication of the request for the end of the month FX balancing from the portfolio manager who wants to maintain a currency hedge, based on the monthly performance of equity and foreign and US bonds.

“Overall, both US and US equity bonds have registered the profit of marginal months to date, with large market capitalization in the last dominating our end of the month and encourages a weak dollar sales signal to most majors,” Sheryl Dong Barclays wrote.

“Superior performance is relative in the EA (Euro region) and the Japanese bond market and their currency to the dollar offset the weak sales pressure on the dollar against EUR and JPY, making signals according to neutral,” Dong added.
Source: Reuters (Samuel Indyk)