Citi turns tactically neutral on EUR/USD, while maintaining a bearish bias on GBP/USD.
"We turn neutral EURUSD tactically. In the Eurozone, note ECB’s Schnabel published an important speech on the proportionality of the ECB’s actions, in light of the German Court ruling, while the settlement of the Tltro allotment implies that the ECB balance sheet likely rose by several hundred billion euros last week, while the Fed balance sheet declined once more," Citi notes.
"We remain bearish sterling. Extended Brexit negotiations continued on Monday, while the end-June deadline has been de-emphasized," Citi adds.