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Market Analysis and Investment Insights

Weekly market analysis and bulletin, Insights from the Office of Chief Investment officer on financial market and the latest on FX. Dive into the world of wealth with Citi UAE.

Investment Strategy Bulletin

Investment Strategy Bulletin ꟾ May 2, 2025 By Citi Wealth Insights

Waiting Game

Soft data remains poor, but hard data has yet to turn: Although the "soft data" of various economic surveys continues to indicate deteriorating corporate and consumer confidence, actual “hard data” economic releases have not yet demonstrated any meaningful decline in activity as exemplified by today’s relatively strong payrolls report (+177,000 jobs). Accordingly, market participants are forced to price scenarios around when and if this transmission from weak sentiment to weak economy will occur.

Latest CIO Views

Latest CIO Views

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Weekly FX Focus

Weekly FX Focus ꟾ 8th May 2025

CHF – A Funding Currency Or A Safe Haven?

CHF has the lowest rates within G10 FX (SNB’s overnight cash target is 0.25%) and is typically favored as a currency to fund purchases of risk assets. This implies that ordinarily, CHF should weaken vs its G10 FX peers as investors borrow CHF to take advantage of its ultra-low interest rates to buy higher yielding assets in other currencies. However, CHF also wears another hat – one of the safe haven currencies during times of global crisis.

Wealth Outlook 2025

Growth amid Discord: Investing in 2025 and Beyond

With Trump’s re-election in 2025, many are concerned about the potential policy and tariff changes that may impact investment portfolios. Citi believes in remaining disciplined when investing and to broaden horizons to other markets that have the potential to generate returns.

FX Perspectives | May 9th, 2025

FX Perspectives: Has The Dust Settled For The USD?

Since April, the broad-based USD Index, the DXY has dropped sharply. The tariffs caused a market downgrade of US exceptionalism. This caused a loss in confidence of the USD safe haven appeal which led to investors unwinding their long positioning of US treasuries and USD. Has the dust settled since then? Our Head of Global FX Strategy, Jaideep Tiwari examines the situation.

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Middle East Strategy

Middle East Strategy ꟾ Mar 2025

Middle East Strategy: Economic Fear Driving Prices Lower

The oil market is facing significant downward pressure from a combination of weak demand expectations, rising supply from OPEC+ and non-OPEC+ producers, and global economic uncertainty. Brent crude is currently trading around $70 per barrel at time of writing, with risks tilted to the downside as markets prepare additional supply and potential economic headwinds.

Global Strategy

Global Strategy ꟾ Quadrant | February 7, 2025

Keeping Our Balance Amid Upheaval

Territorial claims. Tariffs. Government makeovers. What is the new US administration really up to? While we remain optimistic U.S. growth and profits will rise in 2025 and 2026, any new approach to trade – with both allies and rivals – brings increased risk to the table. President Trump’s extreme high risk/high reward approach makes a more volatile market background likely.

Planting for tomorrow: Weaving sustainability into the path toward food security

Sustainable Investing Spotlight

Planting for tomorrow: Weaving sustainability into the path toward food security

Rising global food insecurity has come under the spotlight following a series of geopolitical shocks, including the COVID-19 pandemic and Russia’s invasion of Ukraine. Food security concerns have also been compounded by the effects of a shifting climate and increasing evidence of damage caused by accelerating biodiversity loss and water scarcity. Amid concerns about immediate and long-term food security, agriculture policies are caught in the crossfire between short-term food security and sustainability.

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