Citi maintains a bullish bias on JPY and GBP. Citi is also long AUD/USD vi 3m AUDUSD 1x2 0.75/0.77 call spread (November 10), and Long AUD/NZD via 1y AUD/NZD seagull (July 14).
"We remain bullish on JPY as we believe that risks to the currency are asymmetrically skewed higher. We continue to be bullish GBP and our base case is still for a deal with 80% probability," Citi notes.
"Antipodeans should outperform with the more positive risk backdrop; however, we prefer AUD over NZD given: (1) strong improvement in Australia domestic fundamentals and (2) stretched long positioning in NZD despite RBNZ hawkishness now fully priced in. We remain long AUDUSD and AUDNZD," Citi adds.