Citi summarizes the output of its month-end rebalancing model.

"The preliminary estimate of month-end FX hedge rebalancing flows calls for USD buying across the board. The average signal strength in G10 currencies is approximately twice the historical norm," Citi notes. 

"Japanese investors’ needs to reduce foreign fixed income hedges are the main driver of the above-average USDJPY buy-signal. Poor performance of Euro Area bonds on the other hand weakens the overall signal to sell EUR," Citi adds.