Forex Flash: General flows out of USD appears month end related - RBS

FXstreet.com (Barcelona) - “We are approaching the Easter holidays and month and fiscal year end for some,” notes FX Trading Strategist at RBS Greg Gibbs. “It may have been the case that the USD has been weaker than usual into this book closing period,” he adds, expanding: “Our desk reports general flows out of the USD that appears month end related. However, they also report that these flows appear now to be abating or becoming more evenly matched.”

The analyst continues: “As such, with indicators suggesting that the USD is trading in a generally firmer trend since last year, this trend may be ready to reassert again in the coming weeks,” Greg suggests. “As discussed in recent reports, the tone of US data will be increasingly important now that the Fed is looking to adopt a more variable approach to its pace of asset purchases,” he concludes.