Asia Strengthens.....

Asian currencies have strengthened across the board led by Usd/Jpy. The big story here is Prime Minister Koizumi has followed through on his promise to dissolve the lower house and call a snap election following the failure of the upper house to approve his privatising the post office system. Also hearing calls from the Hedge Fund community that it is time to start buying Asian equities. This should lend support to Asian currencies (clearly it did last night).

In Brazil the central bank once again cancelled it auction (did not buy dollars). Also hearing (for the first time ever) that hedge funds are looking to buy Brazilian equities. In the past this has always been a bond/currency play.

FXTRADINGIDEAS@AOL.COM