November 12, 2010

Citigroup Rule Model Says Central Banks May Sell U.S. Dollars This Month

Filed under: Uncategorized — bigcapital @ 8:51 am
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Citigroup Rule Model Says Central Banks May Sell U.S. Dollars This Month


Nov 9, 2010 –Bloomberg


Central bank reserve managers may be net sellers of U.S. dollars this month after the conditions activating a trading rule were met, Citigroup Inc. said.


The dollar fell last month; reserve managers increased their currency holdings, on a valuation-adjusted basis, and by more than the previous month, meaning dollar sales are likely in November, Steven Englander, global head of currency strategy at Citigroup in New York, wrote in a research report today.


“If conditions one through three are met, the rule says buy euro-dollar on the seventh business day of the month, by which time the early reporting central banks in our sample will have reported their reserve levels, and hold the short dollar position through the seventh day of the next month,” he said.


The Dollar Index, which measures the greenback against a basket of its most-traded peers, was little changed at 76.977 as of 4:06 p.m. in London. It is 1.1 percent weaker this year.


September 15, 2010

Citigroup: Is USD/JPY A ‘Buy On Dips’ Now ? the bank says

Filed under: Uncategorized — bigcapital @ 5:24 pm
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Citigroup: Is USD/JPY A ‘Buy On Dips’ Now ? the bank says

Will US reaction to the BOJ intervention dictate its success?
Citigroup reckons that investors may be overestimating external political concern, especially compared to the trade problems created by the CNY.

“If US authorities simply continue to decline to comment, this is implicitly turning a blind eye to the Japanese action and could serve to disappoint those looking for stronger opposition,” the bank says, suggesting that the intervention may well prove more successful than expected.

The bank recommends “maintaining short JPY positions and dips in USD/JPY associated with lulls in intervention could be opportunities to further build longs. – Market Talk

Wednesday. September 15, 2010

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