18 August 2010

USD/CAD : Hedge against Risk Off Blowing Up

  • Thus far, have maintained between 4:0 to 4:2 ratio for Risk Off vs long CAD, given strong view here that bond yields are headed lower and is leading the rest.
  • In doing so, have left myself with plenty of room to average into selling USD/CAD rallies all the way up towards 1.06.
  • Current round of "trading" hedge is averaged in short at 1.0297 with hedge ratio currently standing at 4:1

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