Citibank foreign exchange strategists believe that, to a large extent, the upcoming July 9 tariff negotiation deadline may be an “irrelevant event” for G10 Foreign Exchange. On the EU side, Citi's basic prediction is that the two sides will reach an agreement framework by July 9. At that time, the 10% tariff rate will be extended, and negotiations will continue. “Given the recent strengthening of the euro, they speculate that such news will slightly benefit the euro, but it is not necessarily a significant driving factor, as much of the good news is already reflected in the euro price.” On the Japan issue, Citi believes that given Trump's recent remarks, the possibility of reaching an agreement is declining. “The risk of Japan's tariff increases appears to be highest,” Citi said. The bank expects the US and Japan to climb to 150 this summer and then fall below 140 later this year. The yen will return to strength as the Bank of Japan expects to normalize policies.

Citibank foreign exchange strategists believe that, to a large extent, the upcoming July 9 tariff negotiation deadline may be an “irrelevant event” for G10 Foreign Exchange. On the EU side, Citi's basic prediction is that the two sides will reach an agreement framework by July 9. At that time, the 10% tariff rate will be extended, and negotiations will continue. “Given the recent strengthening of the euro, they speculate that such news will slightly benefit the euro, but it is not necessarily a significant driving factor, as much of the good news is already reflected in the euro price.” On the Japan issue, Citi believes that given Trump's recent remarks, the possibility of reaching an agreement is declining. “The risk of Japan's tariff increases appears to be highest,” Citi said. The bank expects the US and Japan to climb to 150 this summer and then fall below 140 later this year. The yen will return to strength as the Bank of Japan expects to normalize policies.