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Wednesday, May 4, 2011

Month end portfolio rebalancing operation may suppre52 USD

, analysts said month-end financial flows of portfolio rebalancing operation might be tempted to sell dollars.

Barclays analysts in a research report: "United States the impact of the surge in offset by weak performance in the bond market. We model analysis of EUR/USD and GBP/USD to a neutral signal, and dollar, US dollar/Canadian dollar/yen and dollar/Australian dollar weak sell signal is given. "

$ model analysis also points to sell Citi. Citigroup analysts wrote in a report: "dollar/Yen selling signal particularly strong, because of Japan's stock market continued less than other stock markets in the world. "

Westpac that, taking into account the April Japan stock market declines, and British and American stock markets rise, there may be some GBP/yen and dollar/Yen selling.

the Morgan Stanley Capital International (MSCI) Japan in April, down 1.7%.

if asset markets in a given country in a month, less than other markets in the world, the month-end portfolio rebalancing operation is likely to stimulate buying of the currency of the country, and vice versa.