Friday, March 24, 2006

Weak Housing number rocks markets

A weaker then expected housing number caused U.S. futures to rally, resulting in Emerging Markets doing marginally better. I have been clearly tossed around of late but I still like the lower Brazil and Mexican interest rate play against a higher U.S. rates. Mexico cut interest rates again today 25 basis points and Brazil is expected to do the same in a week or two. I also again sold dollars in Mexico (I will stop out above 10.96ish) and Brazil (2.18ish). I always find it easier to be short dollars in these currencies. I am however long dollars against the Euro. A stronger dollar is clearly the big picture trend and I do not see that changing in the near term.

These are the FX Trading Ideas for today.



Post a Comment

Subscribe to Post Comments [Atom]

<< Home