USD: tactical weakness likely to extend but beneficiaries to vary: 3 themes to watch - Citi

Market news

16 October 2019

USD: tactical weakness likely to extend but beneficiaries to vary: 3 themes to watch - Citi

Citi discusses the USD tactical outlook and sees a scope for varied levels of weakness against other G10 and EMFX.

"(1) Fed rate cut coupled with US political tensions (Trump impeachment proceedings) - Tactical weakness in USD likely with JPY and Gold expected to be the key beneficiaries.

(2) Positive US – China trade developments - USD weakness likely against Commodity currencies (AUD, NZD & CAD) as well as Asia EM; Safe havens (JPY & Gold) to also likely weaken across the board (ex USD).

(3) Progress on Brexit - USD likely to weaken against EUR and GBP; safe haven CHF likely to decline against both EUR and GBP," Citi notes.

NZ: Strong CPI data – TDS

Options levels on wednesday, October 16, 2019

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