China finally does it....

Yesterday China Revalued its currency for the first time in 10 years. It moved its rate from 8.2765 to 8.1100 and introduced a trade weighted basket of currencies (unpublished) from which the future value of the Remimbi will be established. This is a big will for the Bush administration although I do not think it will have much economic impact in the near term

Terrorist strike again in the U.K. Today the Police chief asked that people stay home in West London. This coupled with slowing economy, will present the need for the U.K. to cut rates and should also weigh heavy on the pound.

Brazil melting down as more political scandels are expected to be announced this weekend. I have cut all my short dollars here, but still have a short forward position. I am uneasy with this position but will reasses it next week.

These are the FX Trading Ideas for the day.

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