Friday, March 30, 2007

Markets reverse on Iran fears...

It has been a very erratic day in the markets. We started out very positive. All economic numbers were looked at positivly and Stocks ralled and U.S. futures drifted lower on the idea that Rates will remain unchanged.

But all good things come to an end. The CB Governor said that Iran has no plans to stop selling oil in dollars COMPLETELY. Aslo Duties were inposed on some China imports. This is the real reason that the dollar came off so hard. The move was quick and rather painfull. Dollar Brazil, which yesterday took out a key option level at 2.0500, reversed sharply and currently is trading at 2.0530 (ouch).

I feel that in the bigger picture things are unchanged. My trades in order of conviction:

Stay long Euro's
Look for lower rates in Brazil.
Ride the curve in Argentina.

As for Mexico I reduced some of my position in the forwards as the curve is rather flat and I do not see much upside at this time. I am still short rats but not quite as short as before.

That is about it.....

Good Luck and Good Forex trading.



Blogger John Russell said...

Things were kind of all over the place today, but was it truly unexpected. I think the market is just making excuse for its actions. There is always some reason they come up with for a move that occured. It was also the last day of the quarter. Should be plenty of volitility in the week ahead. Keep up the good fight!

3:14 AM  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home