Citigroup's FX strategists, led by Daniel Toban, turned short-term bearish on
the US dollar, citing markets pricing a more dovish Fed, US midterm election
risk and the US Treasury's expansion of repo operations in 10–30yr securities.
The team cut its 3-month dollar-index forecast to 98.34 from 102.12. Citi noted
Treasury Secretary Bessent's move to expand long‑term Treasury repo as a
potential drag on the dollar; the dollar index hit its weakest level since May
on Wednesday and traded around 98.9 on Thursday, and the team said downside
risks to the dollar have increased after a recent neutral stance.
