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The Citibank forex strategist believes that the upcoming July 9th tariff negotiation deadline is likely to be a "non-event" for G10 currencies. Citibank's basic forecast for the EU is that both sides will reach a framework agreement before July 9, with a 10% tariff rate extension, and negotiations will continue. Due to the recent strength of the euro, they speculate that such news may slightly benefit the euro but may not be a significant driving factor as many positive news has already been reflected in the euro price. On the issue of Japan, Citibank believes that the likelihood of reaching an agreement is decreasing due to recent comments by Trump. They stated, "The risk of a tariff increase in Japan seems highest." The bank expects the USD/JPY to rise to 150 this summer, then drop below 140 later this year as the Bank of Japan is expected to normalize policy and the yen will regain strength.