That Citi sell GBPAUD is strange. GBPAUD and AUDUSD make up CABLE. Assuming AUDUSD stays constant or rises a bit more, then CABLE comes down. Cable makes up about half of Fiber. Assuming EURGBP stays constant or rises slightly, then FIBER GOES DOWN. Lots of assumptions but Citi is saying that the some risk currrencies are risky or Citi is wrong again. Food for thought.
Jamie Coleman on
September 2nd, 2010 16:30 GMT
My brain hurts after that jake…
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Good trade!
That Citi sell GBPAUD is strange. GBPAUD and AUDUSD make up CABLE. Assuming AUDUSD stays constant or rises a bit more, then CABLE comes down. Cable makes up about half of Fiber. Assuming EURGBP stays constant or rises slightly, then FIBER GOES DOWN. Lots of assumptions but Citi is saying that the some risk currrencies are risky or Citi is wrong again. Food for thought.
My brain hurts after that jake…