[B]My picks:[/B] Short EUR/USD @ 1.39 for 200 pips in profit
[B]Expertise:[/B] Global Macro
[B]Average Time Frame of Trades:[/B] 1 week
As the US government budget deficit widens, investors are showing their distrust on US debt by requiring more yield for their loans. In fact, 10-year notes had their biggest weekly loss since January and the U.S. dollar dropped to new lows on both credit ratings and inflation worries. However, chances the US will lose its AAA rating are very low and we may see a reversal from dollar losses during this week. Having said that, I expect the euro to remain under selling pressure and I will look for a technical opportunity to sell it around 1.39 with a stop at 1.41 for 200 pips in profit potential. Good luck.