Citi losing faith in call for USD weakness?
Citi flags a scope for further USD upside in the near-term but stays structurally bearish through year-end.
"CitiFX's preference to remain prudent until the noise passes. Although we acknowledge the possibility of a stronger USD over a small timeframe, we remain steadfast in our belief that 2021 will be a weak year for the USD," Citi notes.
"CitiFX Technicals also outlines the crossroads markets find themselves at. Developments that are indicative of inflationary rather than reflationary dynamics may create additional turbulence over the short run. We could subsequently see a brief uptrend in nominal yields that may tactically embolden the greenback,' Citi adds.
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