Citi's trade of the week is to sell NZD/JPY...>

FOREX: Citi's trade of the week is to sell NZD/JPY at JPY77.18, with a target of

JPY75.00, and a stop loss at JPY78.25.

- Citi reasons that "optimism on a potential trade agreement between the US and

China looks likely to unwind. To the extent that expectation for greater signs

of cooperation between the two powers has helped to fuel strength in risky

assets there may now be danger for a reversal in the run-in to the G20 meeting.

This follows signs of a continued gulf between the US and China evident in

speeches by Vice President Pence and President Xi at the APEC Summit, where

leaders were unable to agree on a statement. More broadly, the dispute between

the US and China is increasingly about geopolitics as opposed to trade

specifically, so it may be more difficult to find common ground. This comes at a

time when the US administration may be forced to lean more heavily on trade

policy given limited freedom on domestic issues. Potential for thin markets

ahead of the US Thanksgiving holiday and propensity for investors to more

broadly unwind exposure approaching the end of the yearn amid recent poor

returns could exacerbate response to any disappointment around trade."