Big Day for Emerging Markets

Yesterday Brazil cut the size of the acution that they have been doing on a daily basis for weeks. The market took this as a signal to sell dollars and Sell they did. The market closed off about 6 big figures which is quite a big move. Chile, Argentina and Colombia all followed this move. Although I was not short Dollar Brazil I was short the others and short the forwards. This is the big picture move in my mind(I know I am like a broken record) but I will continue with this core trade for now. I have also been looking at Iceland recently (Again I am attracted by the yield) an think a sell of dollars there could prove to be very benificial.

These are the FX Trading Ideas for today.


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