Citi adopts a tactical negative bias in the near-term.

"CitiFX Strategy states that in G10 FX, this environment supports safe havens vs risky currencies, particularly those with large housing vulnerabilities. But we think Dollar-0negative factors increasingly outweigh the supports," Citi notes.

"In particular, we see USDJPY downside when rates fall and have a positive bias for EURUSD outside of risk-off periods, while we think carry outperformance can continue, amid peaking US and global rates and China reopening boosting RoW growth prospects," Citi adds.