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Barclays: Mild Pressure Expected on US Dollar at Month-End
Summary: According to Jinshi News, Barclays analysts stated in a report that investors are unlikely to sell the US dollar on a large scale during the portfolio rebalancing process at the end of this month. The bank's month-end rebalancing model indicates that the expected selling of the US dollar will be relatively mild. In the first ...
According to Jinshi News, Barclays analysts stated in a report that investors are unlikely to sell the US dollar on a large scale during the portfolio rebalancing process at the end of this month. The bank's month-end rebalancing model indicates that the expected selling of the US dollar will be relatively mild. In the first half of July, high core inflation, resilient economic activity, and a strong labor market supported the US dollar. However, these gains were completely offset as Trump continued to pressure Powell for rate cuts. The positive momentum in US stocks continues, while US bonds are relatively underperforming. Barclays evaluates potential demand in the foreign exchange market at month-end by measuring the relative performance between foreign and US stocks and bonds, especially for investors looking to maintain currency risk hedging behaviors.
