Month-end is here but is there much rebalancing to be had?


How are things shaping up ahead of this month-end

In terms of FX, Citi’s preliminary estimate points to weak USD buying need with the average USD buy signal at 0.35 standard deviations. The only exception is USD/JPY with a signal that slightly exceeds 0.50 standard deviations.

As for the timing, just be aware that the US and UK will see holidays next Monday so investors may look to sort out any rebalancing flows this week.

Looking at equities, I reckon this is worth something to keep in mind as the S&P 500 is only 0.2% higher from the April close as of yesterday.

That can easily be closed in one session so perhaps there might not be much rebalancing flows for stocks but it’s not perfect science, just something worth keeping tabs of.

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The Nasdaq is 2% off its April close while the Dow is up 1.3%.