Citigroup got a cash infusion from Abu Dhabi last night. Here's the problem. They had to borrow that money from them at 11% which is very high. Then Abu Dhabi has the right to convert over to stock and own a portion of Citi also. So they just water things down for investors and ensure lower profitability due to the high interest rate infusion that they just took. It also shows how desperately they needed the money in order to pay that high of an interest rate. Seems to me it's a sign of weakness and not strength for Citigroup. So if stocks initially rally off of it, look for that rally to be sold.
What does this have to do with forex? It means that EUR/JPY will likely follow the Dow's direction. If the Dow rallies, then look to sell those EUR/JPY rallies upward. For the rally could be temporary in nature.
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