A conflict in month-end FX rebalancing indicators this month – Deutsche

Deutsche says that their month-end FX mannequin is hinting at conflicting indicators from a relative fairness efficiency versus a seasonal efficiency standpoint. The agency says that rebalancing flows on the again of relative fairness efficiency suggests gentle USD shopping for towards the euro. Nevertheless, seasonality factors in the direction of broad US promoting – specifically on month-end itself and the primary buying and selling day of February.

That being mentioned, Deutsche is fast to level out that there are larger components in play in markets this week. The entire challenge involving Nvidia, DeepSeek, and tech shares usually is one thing that stands out alongside key earnings releases. We’ll be getting Apple’s earnings later immediately after all after Meta, Microsoft, and Tesla yesterday.

The Fed was the opposite key issue however we have already gotten over that hump now. From earlier: What is the takeaway from the Fed yesterday?

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



Source link