Citi look to politics and the economy for an upcoming 'risk off' move
I picked out a yuan view from Citi:
- Citi have closed their short USD/CNH trade citing the conclusion of phase 1 and phase 2 agreement is a long way off
But, there is more:
- risk from the U.S. presidential election is under-priced, its time now to reduce risk trades a little
- uncertainty about who will be Democratic nominee - the forthcoming Iowa Caucus "could become a risk-off event"
- global economic growth is a brighter point, will pick up