Let's say the USD is near top of it's strength for now, wouldn't that mean they are buying at peak and as USD strength drops, they will have unrealized losses. So actually it's not a good investment for them unless they believe the USD will continue to strengthen?
Let's say the USD is near top of it's strength for now, wouldn't that mean they are buying at peak and as USD strength drops, they will have unrealized losses. So actually it's not a good investment for them unless they believe the USD will continue to strengthen?
Hi Tim, thank you for reading.
You are correct that should the USD retraces for a bit, then the institutions might not be able to reap the windfall of FX.