Citi discusses the USD outlook and adopts a bearish bias over the medium-term.
"We continue to flag that positive data surprises appear to already be in the price as outlined by CitiFX Quant. Note too that CitiFX Strategy expects further dollar downside to materialize in the medium term," Citi notes,.
"With the pace of US yield increases set to slow, vaccinations picking up in the rest of the world, data momentum turning against the US, and the overall risk environment supported by abundant liquidity. Technical signals also reinforce this," Citi adds.