[B]My picks:[/B] Short EUR/USD since 1.3950 and 1.41
[B]Expertise:[/B] Global Macro
[B]Average Time Frame of Trades:[/B] 1 week

Yesterday, the Federal Reserve kept its benchmark interest rate unchanged at 0.25%-0%, a record low. This was widely expected but judging by the sharp rally in the US dollar, the FOMC statement was more bullish than had been anticipated. “Although economic activity is likely to remain weak for a time, the Committee continues to anticipate that policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth in a context of price stability”, the Fed said. Looking ahead, in the short-term we think the US dollar will remain under heavy selling pressure until we have a clear exit strategy for quantitative easing by the US Federal Reserve. However, a recent change in 2-year interest rate differentials in favor of rate hikes by the Federal Reserve is likely to support the US dollar in the long-term. I have been short euros since Monday when the EURUSD was trading at 1.3950 and I’m targeting the 200 day SMA at 1.3389.