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Aug 27 - 09:55 AM
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Bank of America: Month-End Fixing Points to Rebalancing out of GBP and EUR and into USD
By eFXdata — Aug 27 - 09:13 AM
Bank of America Global Research summarizes the signals from its month-end fixing model which points to lower GBP/USD and lower EUR/USD into this month's fix.
"We estimate FX rebalancing needs based on a conventional 60/40 portfolio of global equities & bonds.
The underperformance of USD vs GBP & EUR denominated assets over August suggests rebalancing out of GBP (-1.3σ) and EUR (-0.6σ) and into USD," BofA notes.
Source:
BofA Global Research