Daily price prediction thread, page-818

hedging isn't that straight forward. It can be very expensive to hedge. Effectively you are paying a premium for a guaranteed exchange rate. Don't forget, it is near impossible to create a currency arbitrage these days. If you want to hedge against the USD today, based on various current forecasts. You may be paying the equivalent of 80c plus. You also need the cash upfront.
For those of you that think that hedging will solve all of our exchange rate risk, you need to read up on it a bit more. Yes, it can help if your bet on where the exchange rate is going is correct and also if you have plenty of cash.
For every winner in hedging, there is a loser - not everyone wins.
As always, DYOR