FXStreet (Bali) – According to Barclays, month-end flows should be USD positive today, against all of the major currencies, on passive re-balancing of hedges.
Barclays notes: “Renewed concerns about the health of the Chinese economy led to a bout of global risk-off moves causing extreme losses in equity markets all across the board. The market value of the US equity market (because of its size) fell significantly relative to the rest of the world, while gains in bond markets were moderate.”
“Our model, which works under the assumption that static FX hedge ratios are maintained, shows strong USD buying signals into month-end against major currencies.”, Barclays adds.
(Market News Provided by FXstreet)