Citi on the USD: More room for it to fall

Author: Eamonn Sheridan | Category: News

Remarks on the USD from Citi

They are looking for the USD to fall further, tying in politics:
  • The appointment of a special counsel to investigate Trump/Russia ties implies the better position is to sell USD
  • Citi looking for broad-based dollar weakness, not necessarily a concentrated 'risk-off' move
  • Focus on U.S. politics has heated up
  • Citi say the underperformance of from some small & 'risky' currencies represents a buying opportunity
  • More political uncertainty in the US will mean more USD weakness - it makes policy progress in the US less likely
  • Some of this is 'priced in', but the current skew in pricing is not enough to support the dollar
  • "expands the window for dollar weakening over the course of the coming summer"