It’s the last day of the month
I love it when the final day of the month lands on a Friday and a new month starts on a Monday. It’s so tidy.
Bank models estimate there will be some month-end USD selling. That might have happened already but don’t discount fixing flows. The London fix is coming up at the top of the hour.
At the moment, we’re also seeing a recovery in the risk trade as yields fall back to flat on the day. The S&P 500 has trimmed the decline to 15 points.