Citi "expands the window for dollar weakening over the course of the coming summer"

Reuters reporting remarks from a Citi report published on the USD outlook earlier on the day.

Key Points:

The appointment of a special counsel to investigate Trump/Russia ties implies the better position is to sell USD

Looking for broad-based dollar weakness, not necessarily a concentrated 'risk-off' move

Focus on U.S. politics has heated up

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"

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