Citi Research discusses the USD outlook and likes to trade it tactically in the near-term.

"We think you chase USD for a trade, but don't overstay. We forecast EURUSD at 1.13 over the 0-3 month horizon (this is what we expect it can average over the forecast window), but with a asymmetric skew towards lower and potential to touch 1.10 (we would consider this more of a trade target where we would take profit)." Citi notes.

"As a reminder, we maintain our 9m EURUSD 1.14/1.10 put spread that we entered at the start of the year (spot ref 1.1352)," Citi adds.