Derived Data That Drive Results
Credit Agricole, a major financial institution, provided insights based on the patterns observed in their month-end fixing model.
Key Points:
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Equity Market Moves: Adjustments for market capitalisation and FX performance during the month indicate that there have been certain shifts in equity markets.
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Portfolio-Rebalancing Flows: The movements observed hint at a likelihood of mild USD selling across all fronts during the month-end portfolio rebalancing.
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Corporate Flow Model: Credit Agricole's model suggests a bias towards buying the EUR at the month's end.
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Combined Strategy: Factoring in the indications from their corporate flow model, Credit Agricole recommends buying the EUR. This strategy pits the EUR against a basket that has equal weightings of USD and GBP.
In Summary:
Credit Agricole's month-end fixing model, after accounting for this month's equity market adjustments, predicts slight USD selling. Their corporate flow model leans towards EUR purchasing, leading to a strategy of acquiring the EUR against an equal mix of USD and GBP.
