Short EUR/USD Since 1.36

[B]My picks:[/B] Short EUR/USD since 1.36[B]
Expertise:[/B] Global Macro[B]
Average Time Frame of Trades: [/B]1 week

I have been short EUR/USD since the beginning of last week and even though I gave back some of my previous gains I still expect the euro to fall further against the U.S dollar. My profit target is at 1.34 and I expect the EUR/USD to remain under selling pressure. Indeed, I expect a pullback on all riskier assets including stocks, commodities and high yielding currencies since investor’s expectations that the world economy will emerge from this recession in the second half of 2009 don’t seem realistic. According to World Bank estimates, GDP growth in the developing world will slow to a projected 2.1 percent in 2009 from 5.8 percent in 2008, reflecting the rapid deterioration of global financial and economic conditions.