Research @ Citi Markets Edition: Lessons and Views Post-Davos
Jan 28, 2026
Adam Pickett, London macro head at Citi who specializes in macro and FX, discusses post-Davos themes. He covers geopolitics, dollar dynamics and when USD strength may persist. AI’s impact on equities and flows earns attention. Regional allocation and relative-rate opportunities across G10 are explored.
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Episode notes
Davos Highlighted Geopolitics And AI
- Geopolitics and AI were the two big themes at Davos and both matter for markets.
- The AI debate likely matters more for equities because it directly affects corporate earnings and labor-market dynamics.
The Greenland Episode And Market Reaction
- The Greenland episode showed US maximalist demands softened amid European resistance and market weakness.
- Dirk Willer noted the S&P fell with a weaker dollar during the crisis, then S&P recovered while the dollar stayed weak.
Dollar-Equity Relationship Is Changing
- The usual equities-down/dollar-up relationship has become less reliable when US exceptionalism is questioned.
- The recent pattern of S&P recovering while the dollar remained weak could presage further dollar softness.