Wednesday, April 18, 2007

Emerbing Markets continue to grind along.

It is becoming clear to me that the market does not expect a change in rates in the U.S. for a minimum of 3-4 months. Interest rate futures trade in a range, the dollar continues to weaken and high yielders continue to gain ground.

Today there was some definite complaining coming from the Eastern European block. In Hungary the CB warned that a strong currency was not in the country's best interest and in Czech Republic the CB warned of interest rate rises. I have not turned my back on these trades (long EM currencies) but I am definitly on my toes. Alot of talk cannot be good, because where there is smoke there is fire. I am maintaning my positions for now but will not sit through to much pain as these markets have come a long way.

I also cut my long Euro/Usd position this morning. The market closed basically at my cut level. We have very little economic information till next week and I think that there may be some profit taking as the weeks comes to a close.

Good Luck and Good Forex trading.



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