Citigroup strategists said in a research report on Wednesday that after the Federal Reserve's position seemed more hawkish than expected, they had stopped losing money and withdrew from their previous proposal to short the US dollar against the Canadian dollar. “We first opened this deal on September 2. At the time, it was expected that the Federal Reserve would not be more hawkish than market pricing, but the Bank of Canada's statement at the time seemed even more hawkish. “However, our judgment on the Federal Reserve was wrong. Today's meeting heated up the market's expectations for further interest rate hikes and pushed the dollar higher.” On September 2, the team said it was shorting USD/CAD at 1.3854, with a target of 1.35 and a stop-loss level of 1.3990. On Wednesday afternoon in New York, the USD/CAD was reported at around 1.3990, up 0.5% during the day.

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