Credit Agricole CIB Research discusses the USD outlook ahead of the Democratic Party's primaries starting in February.

"We have long been highlighting the upcoming US presidential elections as an important FX market driver, especially in the event that a populist politician emerges as the front-runner in the Democratic presidential nominee race. Indeed, such an outcome could have a negative impact on the USD. Given the current standing of Senator Sanders in the polls ahead of the February primaries and the 'Super Tuesday' on March 3, we expect the USD to start losing some ground vs EUR, JPY and CHF in coming weeks," Credit Agricole adds.