Citigroup Inc. - The largest player in the global foreign exchange market by volume. The Bank predicts a further depreciation of the US dollar - based on AMarkets.
The bank said the Fed is unlikely to raise rates amid economic slowdown. The last argument in favor of this statement in favor of the USD weakness in the near future - Friday's labor market report from the US Department of Labor. According to forecasts of Citi, in contrast to the dollar, the yen and the euro have a chance of growth.
Index Bloomberg Dollar Spot Index dipped to 2-week low after it became clear that in September, the US economy added only 142 thousand. Rabmest vs. 201 thousand. After that crystallized a trend, according to which emerging markets are vaguely and uncertainly, and European and Japanese indices, by contrast, show positive signs of growth. Index Bloomberg Dollar Spot Index, assesses the dynamics of USD, against 10 key currencies, fell 0.4% to 1208.91 at the end of last week. Index Parker Global Currency Manager Index, assesses the dynamics of foreign investment funds, fell 0.2% to 128.15 - at least since June 20. Prior to the publication of the report on the labor market index grew.
Over the last 3 months the dollar has grown by only 2.6% against the 10 major currencies - the data Bloomberg Correlation- Weighted Indexes. Friday's data favor the so-called protective basket of currencies - the yen, euro, Swiss franc and British pound.