Month-end flows to favour the greenback – Deutsche

The agency says the stability favouring the greenback comes from relative fairness efficiency. The most important of which is most pronounced between European and US equities up to now few weeks. Thus, the rebalancing factors in direction of EUR/USD provide – which can also be a excessive conviction view from Deutsche from a movement perspective for this week.

On the stability, the mannequin factors to month-end flows being extra USD optimistic. And that’s additionally supported by the notion that US equities have underperformed for some time versus all the remainder of the world indices tracked by Deutsche. That provides to a extra bullish USD bias within the short-term amid a scarcity of stories movement this week, based on the agency.

Among the many standouts, Deutsche highlights promoting in NZD/USD and AUD/USD as a part of a seasonal development on the day earlier than month-end i.e. 27 February and month-end date itself i.e. 28 February.

This text was written by Justin Low at www.ubaidahsan.com.



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