By eFXdata — Oct 28 - 11:30 AM
Synopsis:
Credit Agricole’s month-end fixing model indicates a neutral rebalancing flow for October, with the strongest signal favoring a short position on USD/SEK. Mixed global equity performance and broad USD strength suggest balanced flows across most currency pairs.
Key Points:
- Global equity markets were mixed in October, with the USD showing broad outperformance.
- Credit Agricole’s model suggests neutral portfolio-rebalancing flows across FX at month-end.
- The most prominent signal is a short USD/SEK position, aligning with broader market adjustments in FX performance and equity market moves.
Conclusion:
October’s mixed equity market and strong USD performance point to a balanced rebalancing flow, with Credit Agricole identifying USD/SEK as the key pair for a potential sell signal. This setup aligns with expected neutral flows across major currency pairs.
Source:
Crédit Agricole Research/Market Commentary