Citi says no longer bearish on risk assets

From a Citi analysts client note – the bank has switched from bearish to neutral

Says markets seem to be less troubled about the rising number COVID-19 cases, due to:

  • falling hospital and fatality trends
  • better targeted economic restrictions
  • medical breakthroughs are possible

Now look to buy dips in US equites (S&P500), look for higher ahead of earnings season

  • USD bias probably now negative
  • could be EUR/USD upside (Citi cite the EU recovery fund, less threat from the German court ruling on BUBA bond buying)

via Bloomberg 

For bank trade ideas, check out eFX Plus