Goldman FX Desk Back To Its Old Value-Destructive Ways After Stop Out In Latest FX Reco In Just Two Weeks
It is good to see that Thomas Stolper has not lost his value destroying touch. In just the latest iteration of the company's FX team costing clients oodles of money (and making lots of money for its prop traders), we remind readers that on June 19, a full two weeks ago, Goldman advised clients to "Go long AUD/JPY for a target of 90 with a stop at 84." Our jaded Goldman translator kicked in and provided the following interpretation of Stolper's words: "As of tonight Goldman is advising clients that its prop desk has a lot of AUDJPY to sell up until 90, and will buy everything below 84, in other words Thomas Stolper says to go tactically long the AUDJPY until 90, with an 84 stop. Of course, this makes all the sense in the world if China is slowing down." Well, it seems that Goldman is now done offloading it AUDJPY exposure. As for any remaining Goldman clients who bought into the recommendation: Sorry. As of yesterday, AUDJPY traded below 84 on at least two occasions, droppoing as low as sub 83.10, thereby stopping everyone out.
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