*INVESTMENT PRODUCTS: NOT A BANK DEPOSIT. NOT GOVERNMENT INSURED. NO BANK GUARANTEE. MAY LOSE VALUE

*INVESTMENT PRODUCTS: NOT A BANK DEPOSIT. NOT GOVERNMENT INSURED. NO BANK GUARANTEE. MAY LOSE VALUE Citibank Wealth Management Feb 11, 2019 with data as of Feb 8, 2019 Weekly FX Strategy FX Analysis Data Forecasts Weekly FX Insight Please note and carefully read the Important Disclosure on the last part 0

Weekly FX Strategy: GBP GBP news The BoE kept the interest rate unchanged at 0.75% but revised down 2019 and 2020 economic growth forecasts to 1.2% and 1.5% respectively. GBP was pressured on the rate decision. UK PM May held a meeting with President of the European Commission Juncker. He reiterated that the EU would not revise the Brexit agreement. Lawmakers will debate a parliamentary motion on Britain's exit from the European Union on February 14. Hard Brexit risk may continue to trouble GBP in the short term. GBP outlook We expect a delay in Brexit is becoming perhaps more likely and see a mild appreciation of GBP. The real risk for the currency lies in non-negligible probabilities of a Corbyn-led Government. 0-3M forecast: 1.30 6-12M forecast: 1.34 LT forecast: 1.48 GBP/USD Daily Chart 1.2898(fibo 0.764) 1.2662 (Aug 2018 low) 1.3217(Jan top) Strategy for GBP holders - Diversify into USD The BoE revised down 2019 and 2020 economic growth forecasts to 1.2% and 1.5% respectively. The BoE s dovish tilt may undermine GBP. The BoE revised down global economic forecasts for the UK and global economy. Thus, even though the BoE may still continue to tighten monetary policy, the BoE may not hike rates until August. Bearish on GBP USD 1.3217 1.2898 Bearish on GBP HKD 10.37 10.13 Strategy for USD holders - Buy GBP upon retracement Lawmakers will debate a parliamentary motion on Britain's exit from the European Union on February 14. Majority of the Parliament may not prefer a hard Brexit and the government may not actively propose it either. Even if the Parliament passes the Brexit agreement, several bills still need to be passed and thus an extension of Article 50 TEU is still likely, which may underpin GBP. Source: Bloomberg L.P., as of Feb 8, 2019 Since GBP/USD retreated to neutral levels, the pair may range trade between 1.2898-1.3217. A break of 1.2898 may send the pair lower to 1.2662. Bullish on GBP USD 1.2898 1.3217 Bullish on GBP HKD 10.13 10.37 The brackets are the exchange rates in terms of Hong Kong dollar, with HKD $7.8474 exchange rate for reference 1

Weekly FX Strategy: NZD NZD news US-China trade fears renewed as White House economic advisor Kudlow said that there was a pretty sizable distance to go in US-China trade talks. US President Trump confirmed that he would not meet President Xi before the March 1st deadline. Rising trade negotiation concern and risk aversion pressured NZD. Bipartisan talks to avoid second US government shutdown are deadlocked, which restrained USD uptrend and supported NZD. NZD outlook Chinese easing, bearish dollar narrative and a marked improvement in ToT may support the NZD. However, a relatively dovish central bank may restrain the kiwi. 0-3M forecast: 0.68 6-12M forecast: 0.68 LT forecast: 0.67 NZD/USD Daily Chart 0.7060(Jun 2018 top) 0.6970(Dec 2018 top) 0.6697(fibo 0.50) Strategy for NZD holders - Diversify into USD The RBNZ may keep the interest rate unchanged this week with its policy statement underlining global economic growth downside risk. The RBNZ may not want to be seen as relatively hawkish vis-a-vis its policy making peers. We expect the RBNZ to hike rate by Q1 2020. A late hike may restrain the NZD. Bearish on NZD USD 0.6970 0.6697 Bearish on NZD HKD 5.47 5.26 Strategy for USD holders - Buy NZD upon retracement Subdued wage inflation may imply limited scope for further Fed hikes, which sends a stronger positive signal to risk appetite. This will likely be USD-negative against NZD. New Zealand mainly exports dairy products. Since December 2018, dairy product auction price rebounded nearly 20%, which may underpin NZD. Source: Bloomberg L.P., as of Feb 8, 2019 As NZD/USD s RSI continued to fall, the pair may range trade between 0.6697-0.6970 in short term, with next resistance at 0.7060. Bullish on NZD USD 0.6697 0.6970 Bullish on NZD HKD 5.26 5.47 The brackets are the exchange rates in terms of Hong Kong dollar, with HKD $7.8474 exchange rate for reference 2

EUR/GBP 0.8883(fibo 0.618) 0.8618 (Jan low) NZD/CAD 0.9236 (fibo 0.238) 0.8879(fibo 0.618) Source: Bloomberg L.P., as of Feb 8, 2019 3

Dollar Index USD outlook: As the Trump fiscal stimulus fades in terms of the delta to economic activity, we think long term yields have likely peaked, the spot US curve will continue to flatten, which may undermine the USD. More medium term, as yield spreads fall, FX depreciation likely continues. In our forecasts, as US developments become less $ positive, policy elsewhere may support other currencies. Our point forecasts show the $ around flat vs. G10 over 0-3m and around 3-4% weaker over 6-12m. Positive factors: In the event of severe risk-off in markets, USD may resume its safe-haven status, which may support the USD. The brackets are the exchange rates in terms of Hong Kong dollar, with HKD $7.8474 exchange rate for reference 0-3M forecast: 95.89 6-12M forecast: 92.56 LT forecast: 83.95 0-3M forecast: 95.89 6-12M forecast: 92.56 USD/CNH RMB outlook: RMB depreciation pressure will remain limited during the 90-day trade truce between China and the US, and the USDCNY will likely hover around 6.85. However, the depreciation pressure will likely resume after Mar 1 if there is no bilateral agreement. As 7 is still an important psychological barrier, we believe the PBoC may not allow the RMB to depreciate beyond this level. Source: Bloomberg L.P., as of Feb 8, 2019 0-3M forecast: 6.85 6-12M forecast: 6.90 LT forecast: 6.60 6.9805 (Nov 2018 top) 6.6961(fibo 0.618) Bearish on CNH USD 6.6961 6.9805 Bearish on CNH HKD 1.1719 1.1242 Bullish on CNH USD 6.9805 6.6961 Bullish on CNH HKD 1.1242 1.1719 Source: Bloomberg L.P., as of Feb 8, 2019 4

EUR/USD The brackets are the exchange rates in terms of Hong Kong dollar, with HKD $7.8474 exchange rate for reference EUR outlook: The ECB announced to end the bond purchasing program by end- 2018. We expect the bank to start the policy normalization in 2019. With bond supply rising to positive value, less EU bond outflow may support the EUR. Besides, loosening monetary policy by the PBoC may spur EU s export to China, which may underpin the EUR. 0-3M forecast: 1.30 6-12M forecast: 1.34 LT forecast: 1.48 1.1621 (Oct 2018 top) Bearish on EUR USD 1.1621 1.1216 1.1216 (Nov 2018 low) Bearish on EUR HKD 9.12 8.80 Bullish on EUR USD 1.1216 1.1621 Bullish on EUR HKD 8.80 9.12 USD/JPY JPY outlook: First, the continuation of the low interest environment squeezes net interest margins for financial institutions. Second, the bank may not want to affect the upcoming US-Japan trade talks. BOJ policy is already more restrictive in terms of balance sheet nominal expansion and broad monetary growth. This is also likely a JPY positive longer term. Bearish on JPY USD 106.92 110.73 Source: Bloomberg L.P., as of Feb 8, 2019 0-3M forecast: 109 6-12M forecast: 103 LT forecast: 93 110.73(fibo 0.618) 106.92(fibo 0.236) 104.56 (Mar 2018 low) Bearish on JPY HKD 7.34 7.09 Bullish on JPY USD 110.73 106.92 Bullish on JPY HKD 7.09 7.34 Source: Bloomberg L.P., as of Feb 8, 2019 5

AUD/USD The brackets are the exchange rates in terms of Hong Kong dollar, with HKD $7.8474 exchange rate for reference AUD outlook: Chinese easing and bearish dollar narrative may support the AUD. However, the RBA may hike rate by H2 2020. Further CNY weakness is especially possible if no bilateral trade agreement is reached, which may restrain the AUD. 0-3M forecast: 0.72 6-12M forecast: 0.73 LT forecast: 0.77 0.7438(fibo 0.50) Bearish on AUD USD 0.7438 0.7021 0.7021(Oct 2018 low) Bearish on AUD HKD 5.84 5.51 Bullish on AUD USD 0.7021 0.7438 Bullish on AUD HKD 5.51 5.84 USD/CAD CAD outlook: The BoC may still have 3 more hikes in this cycle and oil bullish may benefit the CAD. But tightening path at risk may restrain the CAD. Source: Bloomberg L.P., as of Feb 8, 2019 0-3M forecast: 1.31 6-12M Forecast: 1.29 LT Forecast: 1.20 1.3457(fibo 0.764) Bearish on CAD USD 1.2991 1.3457 1.2991(fibo 0.236) Bearish on CAD HKD 6.04 5.83 Bullish on CAD USD 1.3457 1.2991 Bullish on CAD HKD 5.83 6.04 Source: Bloomberg L.P., as of Feb 8, 2019 6

USD/CHF The brackets are the exchange rates in terms of Hong Kong dollar, with HKD $7.8474 exchange rate for reference CHF outlook: The SNB continues to cite a highly valued currency and fragile market backdrop as reasons to justify negative interest rates and FX intervention. As we expect the inflation outlook to remain subdued, particularly due to oil price base effects, the SNB most likely remains on hold for the foreseeable future. The main risks to our forecasts are developments politically in the region. Should Brexit related or Italian budgetary risk premia rise, we envisage more CHF strength than forecasted. 0-3M forecast: 1.00 6-12M forecast: 0.98 LT forecast: 0.92 1.0171 (Mar 2017 top) 0.9789 (Jun 2018 low) Technical Analysis: Since the RSI stayed at neutral territory, USD/CHF may range trade between 0.9789-1.0171. EM Currencies Source: Bloomberg L.P., as of Feb 8, 2019 EM Currencies outlook: Against EM, the $ is flat to marginally stronger on both 0-3M and 6-12M horizons. Source: Bloomberg L.P., as of Feb 8, 2019 7

Appendix 1: Last week performance, Citi interest rate and FX Forecasts Citi FX Outlook Forecast 0-3 month 6-12 month Long-term 2/8/2019 1Q 19 2Q 19 3Q 19 Dollar Index 95.89 92.56 83.95 2.50 2.50 2.75 3.00 EUR/USD 1.14 1.18 1.30 0.00 0.00 0.00 0.00 GBP/USD 1.30 1.34 1.48 0.75 0.75 0.75 1.00 USD/JPY 109 103 93-0.10-0.10-0.10-0.10 USD/CHF 1.00 0.98 0.92-0.75-0.75-0.75-0.75 AUD/USD 0.72 0.73 0.77 1.50 1.50 1.50 1.50 NZD/USD 0.68 0.68 0.67 1.75 1.75 1.75 1.75 USD/CAD 1.31 1.29 1.20 1.75 1.75 2.00 2.25 USD/CNY 6.85 6.90 6.60 3.40 3.40 3.40 3.40 Source: Citi, forecast as of Jan 17, 2019 CCY Last week close Weekly Change Major Currencies Weekly Performance Citi FX interest rate Forecast Rate cut expectations Rate hike expectations 1 month high 1 month low 3 month high 3 month low 52 week high 52 week low Year-To-Date Change USD 96.64 1.1% 96.64 95.22 97.54 95.22 97.71 88.25 0.5% EUR/USD 1.1323-1.2% 1.1543 1.1304 1.1543 1.1218 1.2555 1.1216-1.3% USD/JPY 109.73 0.2% 109.97 108.16 114.07 107.68 114.55 104.56 0.1% GBP/USD 1.2944-1.0% 1.3196 1.2717 1.3196 1.2487 1.4377 1.2441 1.4% USD/CAD 1.3278 1.3% 1.3355 1.3102 1.3638 1.3102 1.3665 1.2451-2.7% AUD/USD 0.7088-2.2% 0.7273 0.7088 0.7358 0.6985 0.7988 0.6741 0.6% NZD/USD 0.6740-2.3% 0.6916 0.6723 0.6930 0.6655 0.7437 0.6425 0.5% USD/CHF 1.0005 0.5% 1.0021 0.9744 1.0109 0.9744 1.0128 0.9188 1.7% USD/CNY -- -- 6.8532 6.6961 6.9636 6.6961 6.9799 6.2431-2.0% USD/CNH 6.7847 0.4% 6.8547 6.7095 6.9643 6.7095 6.9805 6.2361-1.3% GOLD 1316.61-0.1% 1321.25 1280.47 1321.25 1200.37 1365.22 1160.39 2.7% Source: Bloomberg L.P., as of Feb 8, 2019 8

Appendix 2: Last week s Economic Figures Time Importance Event Period Actual Survey Prior Monday 02/04/19 05:45 NZ!! Building Permits MoM Dec 5.10% -- -2.00% 02/04/19 23:00 US!! Durable Goods Orders Dec 0.70% 1.50% 0.80% Tuesday 02/05/19 08:30 AU!! Trade Balance Dec A$3681m A$2225m A$1925m 02/05/19 08:30 AU!! Retail Sales MoM Dec -0.40% 0.00% 0.40% 02/05/19 11:30 AU!! RBA Cash Rate Target Feb 1.50% 1.50% 1.50% 02/05/19 23:00 US!! ISM Non-Manufacturing Index Jan 56.7 57.1 57.6 Wednesday 02/06/19 21:30 CA! Building Permits MoM Dec 6.00% -1.00% 2.60% 02/06/19 23:00 CA!! Ivey Purchasing Managers Index SA Jan 54.7 -- 59.7 Thursday 02/07/19 05:45 NZ!! Unemployment Rate 4Q 4.30% 4.10% 3.90% 02/07/19 05:45 NZ!! Employment Change QoQ 4Q 0.10% 0.30% 1.10% 02/07/19 20:00 UK!!! Bank of England Bank Rate Feb 0.75% 0.75% 0.75% 02/07/19 20:00 UK!!! Bank of England Inflation Report Feb 02/07/19 21:30 US!! Initial Jobless Claims Feb 234k 221k 253k Friday 02/08/19 21:30 CA!! Net Change in Employment Jan 66.8k 5.0k 9.3k 02/08/19 21:30 CA!! Unemployment Rate Jan 5.80% 5.70% 5.60% Source: Bloomberg L.P. 9

Appendix 3: Upcoming Economic Figures (Feb 11, 2019 Feb 15, 2019) Time Importance Event Period Actual Survey Prior Monday 02/11/19 17:30 UK!! GDP YoY 4Q -- -- 1.50% 02/11/19 17:30 UK!! Industrial Production YoY Dec -- -- -1.50% 02/11/19 17:30 UK!! Manufacturing Production YoY Dec -- -- -1.10% Tuesday 02/12/19 08:30 AU! NAB Business Conditions Jan -- -- 2 Wednesday 02/13/19 04:00 NZ!!! RBNZ Official Cash Rate Feb -- -- 1.75% 02/13/19 17:30 UK!! CPI YoY Jan -- -- 2.10% 02/13/19 21:30 US!!! CPI YoY Jan -- -- 1.90% 02/13/19 21:30 US!!! CPI Ex Food and Energy YoY Jan -- -- 2.20% Thursday 02/14/19 07:50 JN!! GDP Annualized SA QoQ 4Q -- 1.30% -2.50% 02/14/19 08:01 UK!! RICS House Price Balance Jan -- -- -19% 02/14/19 18:00 EC!! GDP SA YoY 4Q -- -- -- 02/14/19 21:30 US! Initial Jobless Claims Feb -- -- -- 02/14/19 CH!! Imports YoY Jan -- -- -7.60% 02/14/19 CH!! Exports YoY Jan -- -- -4.40% 02/14/19 CH!! Trade Balance Jan -- -- $57.06b Friday 02/15/19 05:30 NZ! BusinessNZ Manufacturing PMI Jan -- -- 55.1 02/15/19 09:30 CH!! CPI YoY Jan -- -- 1.90% 02/15/19 17:30 UK!! Retail Sales Inc Auto Fuel YoY Jan -- -- 3.00% 02/15/19 17:30 UK!! Retail Sales Ex Auto Fuel YoY Jan -- -- 2.60% 02/15/19 21:30 CA! Int'l Securities Transactions Dec -- -- 9.45b 02/15/19 21:30 US!!! Retail Sales Advance MoM Jan -- -- -- 02/15/19 21:30 US!!! Retail Sales Ex Auto MoM Jan -- -- -- 02/15/19 22:00 CA! Existing Home Sales MoM Jan -- -- -2.50% 02/15/19 23:00 US!! U. of Mich. Sentiment Feb -- -- -- Source: Bloomberg L.P. 10

Appendix 4: Upcoming Economic Figures (Feb 18, 2019 Feb 22, 2019) Time Importance Event Period Actual Survey Prior Tuesday 02/19/19 08:30 AU!! RBA Minutes of Feb. Policy Meeting Feb 02/19/19 17:30 UK!! Average Weekly Earnings 3M/YoY Dec -- -- 3.40% 02/19/19 17:30 UK!! ILO Unemployment Rate 3Mths Dec -- -- 4.00% 02/19/19 18:00 EC! ZEW Survey Expectations Feb -- -- -20.9 Wednesday 02/20/19 07:30 AU! Westpac Leading Index MoM Jan -- -- -0.21% 02/20/19 07:50 JN!! Trade Balance Adjusted Jan -- -- -Â 183.6b 02/20/19 08:30 AU!! Wage Price Index YoY 4Q -- -- 2.30% 02/20/19 21:30 US!! Housing Starts MoM Jan -- -- -- 02/20/19 21:30 US!! Building Permits MoM Jan -- -- -- Thursday 02/21/19 03:00 US!!! FOMC Meeting Minutes Jan -- -- -- 02/21/19 08:30 AU!! Employment Change Jan -- -- 21.6k 02/21/19 08:30 AU!! Unemployment Rate Jan -- -- 5.00% 02/21/19 17:00 EC!! Markit Eurozone Manufacturing PMI Feb -- -- 50.5 02/21/19 17:00 EC! Markit Eurozone Services PMI Feb -- -- -- 02/21/19 21:30 US! Initial Jobless Claims Feb -- -- -- 02/21/19 23:00 US!! Existing Home Sales MoM Jan -- -- -6.40% Friday 02/22/19 07:30 JN!! Natl CPI Ex Fresh Food YoY Jan -- -- 0.70% 02/22/19 17:00 GE!! IFO Business Climate Feb -- -- 99.1 02/22/19 18:00 EC!! CPI YoY Jan -- -- 1.60% 02/22/19 21:30 CA!! Retail Sales MoM Dec -- -- -0.90% 02/22/19 21:30 CA!! Retail Sales Ex Auto MoM Dec -- -- -0.60% Source: Bloomberg L.P. 11

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Important Disclosure Unrated or non investment grade Debt Securities typically offer a higher yield than investment grade Debt Securities, but also present greater risks with respect to liquidity, volatility, and non-payment of principal and interest. As a result of being classified as non investment grade Debt Securities, these Debt Securities present a greater degree of credit risk relative to many other fixed income Debt Securities. Higher Credit Risk Unrated or non investment grade Debt Securities generally have predominantly speculative characteristics with respect to the issuer s capacity to pay interest and repay principal. There is greater risk of non-payment of interest and loss of principal. Many issuers of these Debt Securities have experienced substantial difficulties in servicing their debt obligations, which has led to default and restructurings. The issuers of these Debt Securities generally have to pay a higher rate of interest than investment grade Debt Securities. Higher Liquidity and Secondary Market Risk The markets in which unrated or non investment grade Debt Securities are traded are generally more limited than those in which investment grade Debt Securities are traded. This lack of liquidity may make it more difficult to resell these Debt Securities and obtain market quotations. Downgrade Risk Downgrades in the credit rating of unrated or non investment grade Debt Securities by rating agencies are generally accompanied by declines in the market value of these Debt Securities. In some circumstances, investors in the unrated or non investment grade Debt Securities market may anticipate such downgrades as a result of these credits being placed on credit watch by rating agencies, causing volatility and speculation of further credit deterioration. Higher Vulnerability to economic cycles - During economic downturns, unrated or non investment grade Debt Securities are typically more susceptible to price volatility and fall more in value than investment grade Debt Securities as i) investors may reevaluate holdings in lower-quality bonds in favor of investment-grade corporate Debt Securities; ii) investors become more risk averse; and iii) default risk rises. This is often referred to a flight to quality. Event Risk This includes any of a variety of events that can adversely affect the issuer of unrated or non investment grade Debt Securities, and therefore the issuer s ability to meet debt service obligations to repay principal and interest to Debt Securities holders. Event risk may pertain to the issuer specifically, the industry or business sector of the issuer, or generally upon the overall economy. It could have a direct or indirect impact on the issuer and their outstanding debts. 14

Important Disclosure Risk relating to RMB If you choose RMB as the base currency or the alternate currency, you should also note the following: RMB is currently not freely convertible through banks in Hong Kong. Due to exchange controls and/or restrictions imposed on the convertibility, utilisation or transferability of RMB (if any) which in turn is affected by, amongst other things, the PRC government's control, there is no guarantee that disruption in the transferability, convertibility or liquidity of RMB will not occur. There is thus a likelihood that you may not be able to convert RMB received into other freely convertible currencies. CNH exchange rates and CNY exchange rates are currently quoted in different markets with different exchange rates, whereby their exchange rate movements may not be in the same direction or magnitude. Therefore, the CNH exchange rate may be different from the CNY exchange rate. 15