FX-Risk Decoupling Trade Is Back: Third In Three Days
If Ed Thorpe was dead, he would be spinning in his grave. Another day, another FX-risk decoupling. This is the third time in as many day in which the EURJPY has diverged from the ES by a material margin, only to eventually close the gap. Today, it is the EUR crosses that are resilient. The trade is to buy ES and sell EURJPY, sit the Cristal and wait for the spread to close, taking pennies from the dimwitted 286s out there.