We are at the end of the month
The preliminary release of this the month-end fixing pattern shows the sell of the USD against the EUR and the GBP at the end of the month according to data from Citi Research.
“Preliminary estimate of month-end currency hedge rebalancing flows indicates a net selling need in USD on Monday August 31 Citi rating.
“The relative outperformance of US assets has likely left foreign investors under-hedged, giving a net sell signal in USD to increase hedges. This need for foreign rebalancing is estimated at -14bp in global passive assets followed by indices, including -12bp composed of shares …Currency impact suggests USD sell off against EUR and GBP at month endCiti adds.