Hedging Euro Exposure

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  • Post category:Currencies

A subscriber just asked my thoughts on Euro exposure and how to hedge it.  As usual for me, simplest is best; short the Euro (or FXE) and long USD (RYSBX) after a USD correction.

As part of response I also worked up a chart showing hedged vs. unhedged European equity funds along with USD.  HEDJ vs. EZU effectively neuters the currency differentials per the weekly chart.

hedj.ezu.usd

Gary

NFTRH.com