US Dollar Index
Long

CACIB: FX Month-End Rebalancing

8
Global equity markets were somewhat mixed in March. In FX, the USD weakened quite broadly in the month. Overall, the moves in equity markets, when adjusted for market capitalisation and FX performance this month, suggest that month-end portfolio-rebalancing flows are likely to be mild USD buying across the board, with the strongest buy signal in the case of the USD vs the SEK.

Our corporate flow model is pointing to EUR buying at the end of the month. In our combined strategy, we therefore use the signals of the stand-alone month-end rebalancing model and buy the USD vs an equally-weighted basket of G10 currencies.

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