On April 17th, Citigroup strategists raised their expectations for the euro exchange rate on Wednesday, citing the relatively poor performance of the US economy and increasing policy uncertainty, which have put pressure on the US dollar as capital continues to flow back overseas. We have adjusted our forex forecasts to reflect the increasing likelihood of global investors reducing their risk in US asset allocation, “wrote Citigroup strategists Daniel Tobon, Osamu Takashima, and Brian Levine in the report. Differences in cyclical growth, policy and economic uncertainty, and even anti American sentiment may prompt capital to flow back into domestic markets or become opportunities to reduce exposure to such uncertainty
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