Analysis by the CitiFX quantitative investor solutions (QIS) group “suggests that investors will be on balance net sellers of USD to bring their hedges in line with the increased value of their US assets.”
The QIS report notes that US equities are up and that government bonds are stable over the month. Hence foreign investors wishing to be FX neutral will need to sell their positive USD mark-to-market. The QIS model is based on surveys of “asset mix and hedging behaviour of large institutional investors,” they say, and gives a strong USD sell signal of almost 1.5
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