Latam under pressure....While dollar Soars

Brazil and Mexico led Latam currencies lower yesterday. Brazil came under pressure as political scandals took center stage. Previously ignored yesterday was the 4th day of weakening as new developments about pay for votes was exposed in the congressional investigation. On the open this morning these same markets remain under pressure and I foresee more dealers exiting these positions. Remember everyone have been long these currencies collecting yield.

China's Fix today came in at 8.1099. The lack of strengthening of this currency has spilled over to the other Asian currencies which expected a bigger move. Therefore the dollar has moved higher against Asia. Look for the dollar to resume its up move in the days to come.


FXTRADINGIDEAS@AOL.COM