Deutsche Bank: Month-end liquidity favors the US dollar, and selling pressure on the euro may intensify

Jins data on February 25th, Deutsche Bank said that the global portfolio rebalancing operation at the end of this month will trigger significant buying of the US dollar, and the euro faces downward pressure on the Exchange Rate. The bank’s model shows that the cross-market stock performance difference is the core factor driving this trend. In the past few weeks, the divergence in the performance of European and American stock markets has been particularly prominent, driving capital flows more in favor of the US dollar side. Another view also supports this view: for some time, the performance of the US stock market has been lower than all other global stock indexes tracked by Deutsche Bank. The company said that in the absence of news flow this week, this has increased the bullish tendency towards the US dollar in the short term. The bank emphasizes that on February 27th and 28th, the dumping of the New Zealand dollar against the US dollar and the dumping of the Australian dollar against the US dollar are part of seasonal trends.