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George Ma
in
Forex
May 7 14:30

Citigroup bets on US dollar rise against Euro, British pound and Canadian currency

Earlier, the bank successfully predicted reduction of Fed rates to zero and earned 5.25% per annum.
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Citigroup bank assumes strengthening of the U.S. dollar, so it forms its currency portfolio through taking into account long positions, especially against the euro, British pound and Canadian dollar, said currency strategist Kelvin Tse.
Expecting a long period of low oil prices, Citigroup bought a hybrid option contract, which suggests that within a month the USD/Can$ rate will be higher, while the US dollar/Yen will decline.
Earlier, the bank predicted that the Federal Reserve rates would drop to zero. In February, the overnight swap market predicted the rates would fall in March. Citigroup used hedged investment strategy and earned 5.25% per annum.