WTF, boys? I expected better out of my favorite little rats.

What in the world would inspire Goldman to make a move like this? Could one of my little Forex geniuses please clarify for me? Because no matter how many times I read the headline, I still can't figure it out.

Psst, GS Rats, come closer. I hate to break this to you but Canada sends something like 95% of its crap to the United States. Now I know this may come as a shock to you, you little pricks, but you see, we're in the middle of a recession that has left the American consumer desperate to stash as many pennies as possible in their mattresses. So that means Canada is choking. You're welcome for the remedial lesson in supply and demand. Next lesson? Hedging against stupidity.

Goldman Exits Money-Losing Bet on Loonie Versus Mexican Peso (via Bloomberg):

Goldman Sachs Group Inc. exited a bet that the Canadian dollar would strengthen versus the Mexican peso after the trade lost about 5 percent.

“Recent data points have gone against our fundamental views of continued stabilization in Canada and a lagging recovery in Mexico, relative to the global cycle,” analysts at Goldman Sachs wrote today in a note, citing worse-than-expected Canadian retail sales and jobs numbers, and a less-than-forecast drop in Mexican industrial production.

Goldman entered the trade on June 8, and stands to lose about 5 percent including the cost of carry after being “stopped out” when the peso traded beyond 11.40 per Canadian dollar yesterday, the researchers wrote. A long position refers to a bet that a currency will rise. Traders place “stops” on trades to automatically limit their losses.

The peso strengthened 0.5 percent to 11.34 per Canadian dollar at 12:44 p.m. in Toronto, from 11.40 yesterday. The peso has declined 1 percent this year against the loonie, nicknamed for the aquatic bird on the C$1 coin.

Good job, boys, glad to see you've got everything under control.