Decline in the Treasury general account is bearish for USD - Citi
Citi maintains a bearish bias on the USD in the medium-term.
"The US Treasury General Account is likely to decline by > $700bn over the next three months, supporting risk assets. The decline in the TGA balance is also likely to weigh on the USD through two channels: portfolio balance effects and further tightening of FX basis," Citi notes.
"We remain bearish USD, linked to a global recovery and very low US real yields alongside an extra push from the TGA, and despite expectations of US growth outperformance," Citi adds.
For bank trade ideas, check out eFX Plus.