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Our FX month-end rebalancing model indicates that portfolio-rebalancing flows are likely to result in moderate USD selling across the board, with the strongest sell signal observed for USD against EUR. Meanwhile, our corporate flow model suggests month-end selling of EUR and GBP. By combining these insights, our strategy involves selling USD against an equally-weighted basket of G10 currencies based on the stand-alone month-end rebalancing model. Unless the trade hits its stop-loss level, we plan to hold this position until 30 May at 17:00 BST.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!