Deutsche notes that the post-election moves in US assets are making for significant rebalancing signals on the basis of relative equity performance. According to the signals from their model, this will see potential for dollar supply with the largest signals being EUR/USD demand and USD/CHF supply.
The firm also points out that there has been a theme as of late pointing to weaker USD demand from corporates towards month-end. But if it does play out this time around instead, then month-end flows this time around might be fairly muted. Looking to the turnover to December next Monday, Deutsche does say that there is a relatively consistent theme of USD supply on the first day of December against the G10 currencies. The moves should average around 0.3%.
