Barclays expects that there will be a US dollar sell-off at the end of the quarter due to strong US asset performance.

Barclays said that the US stock market reaching record highs, combined with the strong performance of US Treasury bonds, means that global fund managers will have to sell the US dollar when rebalancing their portfolios at the end of this quarter. The bank's model predicts that there will be a large number of sell-offs of the US dollar against major currencies before the end of this quarter, mainly due to the strong performance of US stocks and bonds. If US assets outperform, fund managers typically sell the US dollar to return to their target allocation; if US assets underperform, they will buy the US dollar.