The US Dollar is looking for a new direction after a few turbulent days. What’s next?
Here is their view, courtesy of eFXdata:
Citi discusses USD outlook and notes that investor flow remain overall USD negative.
“The Citi CitiFX Flows team notes net USD outflows by real money (RM) investors over the past 3-weeks which follow a long period of net buying.
The shift in USD RM flows coincides with the mid-December downturn in USD and more dovish Fed speak,” Citi notes.
Citi also notes the US govt shutdown continues to be one of the factors weighing on USD sentiment (albeit in the short term).
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