Short EUR/USD signal into the fixing
The preliminary output of this month-end fixing model point to USD buying against EUR, at month end, according to data from Citi.
"September 2020 Preliminary Estimate & Month-End Asset Rebalancing: The sharp losses in equities in September leads the asset rebalancing model to suggest a rotation into equities from bonds with a moderately strong signal at +0.8/-0.7 historic standard deviations respectively," Citi notes.
"The FX impact of the signals is likely to be USD buying vs EUR at month end. In line with this, CitiFX Technicals is bearish EURUSD targeting 1.1500," Citi adds.
