Credit Agricole month-end fixing model sees USD buying, strongest signal in USD/CAD

<p>Credit Agricole's month-end fixing model points to a moderate inclination for USD buying as September comes to a close. This projection is based on recent downward trends in global equity markets and the USD's across-the-board outperformance this month. The most pronounced buy signal emerges for USD/CAD, making it the currency pair to watch closely as month-end adjustments kick in.</p><p>Key Points:</p><ul><li><p>Equity Market Performance: Global equity markets have been on a downtrend for the entire month, signaling a cautious stance among investors.</p></li><li><p>USD Strength: The USD has demonstrated resilience and strength, outperforming other currencies throughout the month. This positions it favorably for month-end portfolio adjustments.</p></li><li><p>Portfolio Rebalancing: Considering the movement in equity markets and the strong USD performance, Credit Agricole's model suggests that investors may show a mild preference for buying USD in their month-end portfolio rebalancing.</p></li><li><p>Strongest Signal for USD/CAD: Among various currency pairs, the strongest signal for a buy comes in the case of USD vs CAD. This makes it the focal point for traders looking to capitalize on month-end flows.</p></li></ul><p>Market Impact:</p><p>Traders and investors should keep an eye on the USD/CAD currency pair, as the strongest buy signal points towards this pair. As month-end portfolio rebalancing takes place, moderate buying pressure on the USD is anticipated, which could result in market movements favoring the U.S. dollar.</p><p>Conclusion:</p><p>Credit Agricole's month-end fixing model suggests that the downward performance of equity markets, coupled with the USD's robust performance this month, will likely lead to moderate USD buying during month-end portfolio rebalancing. The strongest buy signal is noted in the case of USD/CAD, offering trading opportunities as the month draws to a close.</p><p>For bank trade ideas, <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1693425631724000&amp;usg=AOvVaw2A494S6fEMlRiqzz5BJ21_">check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a href="https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD" rel="nofollow" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&amp;source=gmail&amp;ust=1693425631724000&amp;usg=AOvVaw2A494S6fEMlRiqzz5BJ21_">Get it here</a>.</p>

This article was written by Adam Button at www.forexlive.com.