Thursday, January 04, 2007

Employment numbers one day away

The markets today were very concerning to me. U.S. dollar futures were very bid and Emerging Market currencies were under alot of pressure. Talking to friends in the markets some Hedge Funds were definitly in liquidating some positions. Usd/Zar, Usd Mxn, Usd/Ars, Usd/Clp to name a few. Also the longer end of the Mexican Interest rate curve also very bid. The dollar, strangely, traded with a biddish tone all day (maybe looking at the dollar as a safe haven?). All this makes me very uncomfortable. With an Employment number out tomorrow I am much happier with a smaller position.

We saw these types of moves before and they were all "sold into" but this one has me a concerned. Lets see what tomorrows number brings and I should have a better feel after that.



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