Barclays: End-of-month dollar sell pressure is expected to be mild.

On July 25, Jin10 reported that Barclays analysts indicated in a report that during the portfolio rebalancing process at the end of this month, investors may not sell off the dollar on a large scale. The bank's month-end rebalancing model shows that the anticipated selling of the dollar is expected to be relatively mild. In the first half of July, high core inflation, resilient economic activity, and a strong labor market supported the dollar's performance. However, as Trump continuously pressures Powell to cut interest rates, these gains were subsequently completely offset. The positive momentum in U.S. stocks continues, while U.S. Treasury performance is relatively weak. Barclays assesses the potential demand for investors in the forex market at month-end by measuring the relative performance between foreign and U.S. stocks and bonds, especially the behavior of those investors looking to maintain currency risk hedging.