Citibank: USD weakness to be primary implication of Fed pausing

Sandeep Kanihama FXStreet Contributor

Citibank analysts suggest that primarily a weaker USD is amongst the implications of the Fed pausing.

Key Quotes

“Our analysts continue to hold the view of a weaker dollar, with a fundamental reason being a convergence amongst the US and other economics as the yield differential shrinks & investors looks for opportunities elsewhere.”

“Further, depending on the impact across other asset classes of an economic slowdown in the US and around the world, JPY and CHF could outperform as investors look for safe haven plays.”

“Remember though – EUR and GBP have their own problems in the short term, so whilst our analysts are positive on both heading out 6-12 months, in the short term they may not be able to take full advantage of a Fed pause.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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