Will There Be US Dollar Selling For Month-End Rebalancing?
While this is far from an exact science, you need to be aware of potential month-end rebalancing flows as they can have an impact on forex trading.In this regard, it is not clear whether dollar weakness following Mondays holidays is month-end related but with US stocks up in May, the risk would seem to be on the dollar downside as forex hedges get adjusted.So, watch out as we head into month-end on Wednesday, to see the extent to which rebalancing flows take over,I published this article as a primer to explain rebalancing. With US equities rising during the current month, there is the opposite risk and it is worth your time to give it a read.Will There Be US Dollar Buying For Month-End Rebalancing? (August 22, 2022)Ha
While this is far from an exact science, you need to be aware of potential month-end rebalancing flows as they can have an impact on forex trading.In this regard, it is not clear whether dollar weakness following Mondays holidays is month-end related but with US stocks up in May, the risk would seem to be on the dollar downside as forex hedges get adjusted.So, watch out as we head into month-end on Wednesday, to see the extent to which rebalancing flows take over,I published this article as a primer to explain rebalancing. With US equities rising during the current month, there is the opposite risk and it is worth your time to give it a read.Will There Be US Dollar Buying For Month-End Rebalancing? (August 22, 2022)Ha
