Global FX Strategy

Citi Research has shifted its tactical outlook to bearish risk ('yellow to red') following triggered technical indicators and equity weakness. The firm advises hedging through downside protection in SEK and NZD, anticipating USD strength in a 'yields higher/equities lower' regime.

Key Takeaways

• 1.Citi shifted its risk sentiment from 'yellow to red' following bearish technical indicators across major equity indices.
• 2.The firm sees USD as a beneficiary in a 'yields higher/equities lower' regime driven by potential CPI surprises and ECB policy.
• 3.SEK and NZD are identified as particularly vulnerable to a risk-off environment.

Table of Contents

• CITI'S TAKE
• ANALYST CERTIFICATION
• IMPORTANT DISCLOSURES
• RESEARCH ANALYST AFFILIATIONS / NON-US RESEARCH ANALYST DISCLOSURES
• OTHER DISCLOSURES