Barclays Capital's month-end rebalancing model generates weak USD buying signals against commodity currencies (CAD and AUD) and remains neutral on G3 (EUR, JPY and GBP),
"In USD terms, European equities posted the largest decline in market value, while the US bond market outperformed, helped by the delay of the Fed’s first rate hike
In relative terms, however, the US equity market only modestly outperformed EUR, JPY and GBP markets, while it underperformed CAD and AUD," Barclays clarifies.
"Our model, which works under the assumption that static FX hedge ratios are maintained, shows weak USD buying signals against commodity currencies (CAD and AUD) and remains neutral on G3 (EUR, JPY and GBP)," Barclays adds.
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