Citi discusses the expectations for the Fed policy trajectory in light of yesterday's FOMC policy meeting.

"The cat is out of the bag with 2023 rate cuts (implicitly) on the Fed’s table for the first time. And while it is true that specs/leveraged accounts have been sellers of dollars, CFTC data show that spec positioning (as % of open interest) is at relatively neutral levels when compared to the last 10 years or so, while our CitiFX indices do not corroborate extreme levels," Citi notes. 

"Discussions with clients these past weeks suggest that real money and corporate accounts did not participate meaningfully to the EURUSD rally, were looking to buy on dips towards 1.06," Citi adds.