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2026-09-17 07:06:08
[Citigroup Cuts Losses: Short USD/CAD Trade Ends Due to Misjudgment of Fed Stance] 1. Citigroup strategists stated in a research report on Wednesday that they had stopped losses and exited their short USD/CAD trade recommendation, as the Fed's stance appeared more hawkish than previously expected. 2. Strategists led by Daniel Tobon stated that the trade was initiated on September 2nd, based on the assessment that the Fed's hawkishness would not exceed market pricing, while the Bank of Canada's statements appeared more hawkish. However, this assessment was flawed; after Wednesday's meeting, market expectations for further rate hikes increased, pushing the dollar higher. 3. On September 2nd, the team shorted USD/CAD at 1.3854, with a target of 1.35 and a stop-loss at 1.3990. On Wednesday, USD/CAD surged nearly 0.5%, reaching a more than one-month high of 1.3994 during the session.
