Citi is tactically neutral on USD this week amid the flows of month, quarter, and fiscal year end.
"Month, quarter, and fiscal year end will inevitably introduce further distortion to price action, while signals remain mixed across asset classes. We also have a number of notable events, including an infrastructure announcement from Biden on Thursday and NFP on Friday, which leaves CitiFX Strategy tactically neutral here," Citi notes.
"We expect a bid bias in the USD, given broader risk dynamics. US equity futures and yields are all heading lower, while oil prices are down almost 2%. With very little on the calendar, FX markets will continue to take its cue from broader market sentiment. Note that USDCNH is testing key resistance again, while resistance has held in USDJPY," Citi adds.