Signals from month- and quarter-end rebalancing models from Barclays Capital, and Citi point to net USD buying. "We expect the rebalancing of hedges at month-end to lead to small amounts of USD buying against the major currencies. US equity markets have fluctuated over the course of March as market expectations of Fed tightening has ebbed and flowed but have ended the month lower in terms of market value. The re-pricing of US interest rates – delay and flattening of the rate hiking path – has implied a move higher in US bonds," says Barclays Capital. "Our month-end model, Figure 2, shows small USD buy signals – with ... (full story)