What to watch for at 1600 GMT
The London fix is an hour later for North American traders this week week that usual because Europe has moved its clocks but North America doesn’t until Sunday. That means it’s at 1600 GMT (noon ET).
The final output of this month-end fixing model point to USD buying into today’s fix, according to data from Citi, and Credit Agricole Research.
“As of asset index closing values of 28 October, the estimate for this month-end’s FX hedge rebalancing needs has flipped to a moderate USD buy from a sell-signal published in the preliminary estimate earlier this week. This could be clouding the picture for FX vs equities,” Citi notes.
“The moves in equity markets, when adjusted for market capitalisation and monthly FX performance, suggest that month-end
portfolio-rebalancing flows are likely to be neutral-to-mild USD buying
across the board with the strongest buy signal in the case of the USD
vs JPY,” CACIB notes.