Brazil looking to join Bank of the South...

The Brazilian Finance Minister announced that Brazil was looking to join the Bank of the South. This has initially not been taken very well by the market. The first BMF contract which closed at 2.0250 on Friday, has opened at 2.0380/90 this morning. Clearly "Jumping into bed" with Chavez is not a very good thing. It seems Brazil is looking to hedge its bets. With oil prices high (in my opinion heading higher)it would seem that Chavez will remain "a player" in the months/years to come. I think this weakness will be short lived, although I do think weak shorts will exit. I am short dollars and will remain that way for now.


Good Luck and Good Forex trading.