Citibank exits long bets on the euro/dollar

Citigroup analysts exited their long EUR/USD trade at 1.1540 with a stop loss, incurring a loss of 1.3% including interest. Citigroup's Daniel Tobon, Osamu Takashima, and Brian Levine stated in their report: "We believe this week's pullback in EUR/USD is due to position squeezing, triggered by the 'good news exhausted' market sentiment following the announcement of the EU trade agreement." They established the position on July 11 at 1.1680 with a target price of 1.20. They added: "We still believe that if the USD continues to weaken in the third quarter, it is more likely to be driven by soft data in the US labor market. Therefore, despite being forced to exit with a stop loss today, we are still looking to rebuild USD short positions before the release of US job data on Friday."