Go short USD/CNH as US-China trade deal is a long way off – Citibank

Dhwani Mehta FXStreet

Analysts at Citi Group offer their view on the Chinese yuan following the conclusion of the US-China phase one trade deal and ahead of the US presidential election.

Key Quotes:

“Short USD/CNH trade citing the conclusion of phase 1 and phase 2 agreement is a long way off.

Risk from the US 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.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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