On Thursday, Citi announced its decision to exit a long position in the currency pair, citing recent economic data that suggests potential risk to their initial forecast. The firm had entered the trade with expectations that the core Personal Consumption Expenditures (PCE) price index would print below the Federal Reserve’s forecasts.
However, the latest quarterly core PCE price index reported a 3.7% increase compared to the expected 3.4%, leading Citi to reassess the situation.
Citi had placed the trade based on the anticipation that the core PCE data, scheduled for release tomorrow, would come in below the…
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