Euro day
Today will almost certainly see my Euro hedge sold. If the Euro goes up today then pain will be too much for European manufacturers to bear. They will make their central bank do something, anything. Thus it will drop.
So around noon I will probably dump. Let’s see how this goes.
There are a few reasons not to dump though. The US might keep their dollar in freefall as that will eliminate a huge amount of debt. A single percentage in dollar fall knocks another percent off the debt. That is way easier than actually paying. Also it makes life easier for American manufacturers and exporters. Lastly the American economy is in a panic and thus probably will drop the fed again resulting in a relative rise in the Euro and thus justify my hedge. This being a Canadian thing all that happens to the American dollar sort of happens to the Canadian. If the USD drops then the CDN dollar usually drops for a variety of reasons along with it relative to the Euro.
There are two reasons for still proceeding with this sale. There is profit to be taken and banks like RY demand to have more shares purchaced.