Citibank: The tariff deadline may be "irrelevant" for G10 currencies, but Japan should be watched.

Citibank forex strategist believes that, to a large extent, the upcoming July 9 deadline for tariff negotiations may be an "unimportant event" for G10 currencies. Regarding the European Union, Citibank's basic forecast is that both parties will reach an agreement framework before July 9, at which time the 10% tariff rate will be extended and negotiations will continue. "Considering the recent strength of the euro, they speculate that such news will slightly favor the euro, but it may not be a significant driving factor, as many good news has already been reflected in the euro price." On the issue of Japan, Citibank believes that, given President Trump's recent remarks, the likelihood of reaching an agreement is decreasing. Citibank said: "The risk of Japan raising tariffs seems the highest." The bank predicts that the USD/JPY exchange rate will climb to 150 this summer, and then fall below 140 later this year, as the Bank of Japan is expected to implement policy normalization and the yen will strengthen.