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I thought cost of hedging/going short on a currency with a forward was given by F/S-1 but it seems the author states 0.25% (see below). Am I missing anything (transaction costs, balance sheet costs, etc.)?

25 Feb data

EURUSD spot = 1.2200

3m EURUSD points = 5.0, which implies forward = 1.2205 extracted from this link: https://www.investing.com/rates-bonds/forward-rates

F/S-1 = circa 0.04%. vs 0.25% mentioned in the article

published 25th feb.

"the cost of being short dollars against countries and regions with negative interest rates fell dramatically last year, since the Fed pushed down short rates much more than, say, the Bank of Japan or the European Central Bank. It now costs only about a quarter of a percentage point to be long euros and short dollars for three months."

extract from today's article from BBG.

https://www.bloomberg.com/opinion/articles/2021-02-25/why-the-u-s-dollar-is-more-robust-than-it-looks?srnd=opinion

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    $\begingroup$ Ahem! The 3 month forward points are about 24 not 5 (if I am reading your link correctly, 5 is for 3 weeks). That gives only 20 bps, not the 25 they claim, but closer. $\endgroup$ – noob2 Feb 25 at 14:11

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