Amid all the major events happening this week, don’t forget that we’ll have month-end shenanigans to mix into all of that. Credit Agricole’s month-end FX rebalancing model signals that there will broad based mild USD selling. Adding that the strongest sell signal will be against the EUR.
The firm’s corporate FX flow model also points to EUR buying and GBP sales at month-end. So, Credit Argicole notes that they will be using the combined signals to buy EUR against a weighted basket of USD and GBP. Their timeframe for the trade will be to hold until 1600 GMT on 31 July unless they get stopped out. No levels cited for the entries or stops though, so please do use the information at your own discretion.
This article was written by Justin Low at investinglive.com.
