Barclays’ month-end rebalancing model is indicating weak dollar selling against most major currencies, while remaining neutral against the euro and yen. Of note, US bonds and equities are the bigger drivers of flows as opposed to the Jackson Hole communication pivot last week.

“Overall, both US bonds and equities have registered marginal month to date gains, with the large market cap in the latter dominating our month-end model and inducing a weak dollar-selling signal against most majors.”

The euro and yen are facing a more neutral bias though, amid relative outperformance in European and Japanese bond markets helping to offset the weak selling pressure on the dollar, according to Barclays.