China coming under pressure

Speculation is in the FX markets today for a possible revalutation of the Chinese Remebi during next weeks holiday after comments from Chinese officials over the weekend. Chinese central bank governor Zhou Xiaochuan suggest that everything was in place for currency reform and the only outstanding issue was timing (as report by Reuters). He also said that increased international pressure will move up the timetable. I am trying to stay short dollar Asia (against Singapore and Yen currecntly). When they revalue is will be easiest to get in and out of those currencies.

Good inflation numbers in Mexico late Friday has taken the market by surprise. Although the forwards have drifted in to the left....Spot has weakened. I think these moves are temporary. The central bank has maintained that any increase in U.S. rates will be met with increases in Mexican rates. U.S. rate rises are agiven so stay short dollar Mexico !

These ar the FX Trading Ideas for today....

Good Luck to all !