Citigroup's monetary strategist team recently turned pessimistic about the short-term trend of the US dollar, drastically lowering the forecast value of the US dollar index for the next three months from 102.12 to 98.34. Strategist Daniel Topan pointed out in a research report released on Thursday that the US Treasury plans to double the scale of 10-30 year treasury bond repurchases in November. This move will put new downward pressure on the US dollar by reducing long-term yields and raising market concerns about “financial suppression.” Earlier, the latest steps taken by US Treasury Secretary Bessent to reduce long-term borrowing costs had attracted market attention. Citi warned that efforts to curb yields could put pressure on the dollar, and the US dollar index once fell to its lowest level since May. However, Citi has not changed its long-term view on the US dollar, believing that America's economic growth prospects are still better than those of the other G10 members. Furthermore, concerns about inflation caused by the US-Iran conflict and large-scale capital expenditure related to artificial intelligence are still potential risk points for the future trend of the US dollar. In terms of major non-US currencies, Citi raised short-term expectations for the euro. Based on expectations that the ECB will raise interest rates by 25 basis points in September and the weakening of market expectations for the Fed's interest rate hike, Citi raised the EUR/USD forecast for the next three months to 1.1750. As of noon New York time on Thursday, the pair was trading around 1.17, and the trend was relatively stable.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.