Barclays: End-of-month dollar selling pressure is expected to be mild

ChainCatcher news, according to Jinshi reports, Barclays analysts stated in a report that during the portfolio rebalancing process at the end of this month, investors may not sell off the dollar on a large scale.

The bank's month-end rebalancing model indicates that the expected sell-off of the dollar will be relatively mild. In the first half of July, high core inflation, resilient economic activity, and a strong labor market supported the dollar's performance. However, these gains were subsequently completely offset as Trump continued to pressure Powell to cut interest rates.

The positive momentum in U.S. stocks continues, while U.S. bonds perform relatively poorly. Barclays assesses potential demand from investors in the foreign exchange market at month-end by measuring the relative performance between foreign and U.S. stocks and bonds, particularly the behavior of those investors looking to maintain currency risk hedging.