CitiFX Quant notes that its Data Change Index now flashes a USD sell signal.
"The signal is in the context of preempting moves for the very near term, rather than being suggestive of more structural shifts. The most recent change is a result of a strong Q3 GDP print for JPY," Citi notes.
"Additionally, CitiFX Strategy published a must read earlier in Can the USD Fall 20% Next Year? The potential for large hedging flows, a favorable technical backdrop, and the prospect of global reflation on the back of vaccine advances leaves our team bearish on USD’s outlook for the medium term," Citi adds.