Home / Forex Trading News / USD: Hedge Funds On The Short Side; USD Sell-Off Begins 1-2 Months Ahead Of Fed Rate Cuts – Citi

USD: Hedge Funds On The Short Side; USD Sell-Off Begins 1-2 Months Ahead Of Fed Rate Cuts – Citi

Markets are pricing in two price cuts from the Federal Reserve this 12 months. What does it imply for the greenback?

Citi discusses the USD outlook and notes that Fed price lower expectancies are more likely to stay USD at the defensive, whilst the buck additionally faces demanding situations forward of primary US releases this week, together with Would possibly retail gross sales, Commercial Manufacturing and CPI.

USD longs stay in peril, as consistent with the CitiFX Flows & Positioning Indicator that presentations leveraged (hedge fund) promoting of USD.

Historical past additionally presentations that USD promote offs start some 1-2 months previous to Fed price cuts (maximum analysts now see the Fed chopping in July) resulting in USD weak spot by means of round three.five% on moderate (thus far, the USD Index (DXY) has fallen slightly over 1.1%),” Citi notes.

“This week’s US Would possibly CPI is more likely to garner maximum consideration given how crucial it’s to Fed price lower expectancies. Citi analysts be expecting a cast zero.21%MoM rebound in Would possibly with weak spot in transitory components most likely moderating whilst underlying elements of inflation stay cast,” Citi provides.

For a lot extra FX trades from primary banks, signal as much as eFXplus

Through signing up for eFXplus by way of the hyperlink above, you might be without delay supporting the Forex market Crunch.

Check Also

will a brexit deal steal the thunder from the us elections gbpusd levels to watch 310x165 - GBP/USD awaits Boris Johnson with some anxiety

GBP/USD awaits Boris Johnson with some anxiety

valentines day cheap gifts The Conservative contest has been heating up as Boris Johnson prepares …

Leave a Reply

Your email address will not be published. Required fields are marked *

Show Buttons
Hide Buttons