BLBG: Dollar Drop on Payrolls Would Be Buy Opportunity, Citigroup Says
By Justin Carrigan
Jan. 8 (Bloomberg) -- Investors should buy the dollar if it declines as a result of any “disappointment” in today’s U.S. payrolls report, according to Citigroup Inc.
“Consensus forecasts for U.S. nonfarm payrolls appear to habitually overestimate rises,” New York-based strategists Todd Elmer and Asaf Bernstein wrote in a report dated today. “Ahead of today’s release, this implies risks are skewed towards disappointment. Given increasing dollar sensitivity to data surprises, this could see a temporary pullback. But we suspect this presents a dollar-buying opportunity.”
To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net
