Thursday, December 28, 2006

Asia in Vogue

Asian currencies have been very very bid of late. I have been trying to develop some trading themes for the coming year and it certainly looks to me like more of the same is in order. I know that is the easy way out as for right now I do not have any sizable positions (lower Mexican rates being the largest) but it seems to me there is no reason to fight the trend. U.S. rates should continue to be range bound with the next move (dare I say) up.... No I actually do not think we will see any change for the next 6 months (minimum), and there is really no way to know wgich direction they will go as it all depends on the numbers (but they are looking stronger for now).

Yield baskets have worked very well for the past two years and I definitly like them into next year. I will be writing more on this, in detail, in the coming weeks. I still have Iceland on my radar, but do not feel it is the right time to jump into the water. When I do I will post, but I think we are 3-6 months (at least ) away from that. Turkey, same story. When rates are well into double digits as both of these countries are, oppotunites will be present at some point. So as my Scout master used to tell me....BE PREPARED.

Good Luck to all......



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