Month end rebalancing could be adding to USD weakness

Models put the US dollar on the back foot

Equity market fund rebalancing is likely adding to US dollar weakness today against the euro, pound and yen.

Positive US equity market performance likely left foreign investors under-hedged on their domestic equity assets. That's particularly true compared to pound, which is also likely benefiting from weakness in the gilt market.

Watch out for a final round of USD weakness into the fix at the top of the hour.