[Citigroup Exits Short USD/CAD Recommendation, Citing Misjudgment on Fed] According to a report by Golden Finance on September 17, Citigroup strategists stated in a research note on Wednesday that they have stopped out of their previous recommendation to short USD against CAD after the Federal Reserve's stance appeared more hawkish than expected. 'We initially entered this trade on September 2, anticipating that the Fed's hawkishness would not exceed market pricing, while the Bank of Canada appeared more hawkish at the time,' said the team of strategists led by Daniel Tobon. 'However, we misjudged the Fed. Today's meeting has heightened market expectations for further rate hikes, driving the USD higher.' On September 2, the team announced they had shorted USD/CAD at 1.3854, with a target of 1.35 and a stop-loss at 1.3990. By Wednesday afternoon in New York, USD/CAD was trading around 1.3990, up 0.5% on the day.