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

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.”