Citi on the USD: More room for it to fall

Remarks on the USD from Citi

They are looking for the USD to fall further, tying in politics:

• The appointment of a special counsel to investigate Trump/Russia ties implies the better position is to sell USD
• Citi looking for broad-based dollar weakness, not necessarily a concentrated 'risk-off' move
• Focus on U.S. politics has heated up
• Citi say the underperformance of from some small & 'risky' currencies represents a buying opportunity
• More political uncertainty in the US will mean more USD weakness - it makes policy progress in the US less likely
• Some of this is 'priced in', but the current skew in pricing is not enough to support the dollar
• "expands the window for dollar weakening over the course of the coming summer"