Global Interest Rates continue to climb

Today Sweden surprised the markets by raising rates 25bp and coming out with a quite hawkish commentary. This rocked the market sending the currency from 7.0090 up to 6.8920. This is a very big move. On top of this a major Canadian bank came out with a forcast for not one but two future rate increases in Canada. One on July 10 and the other on September 5. I certainly do not doubt it and I see rate rises in the future of the Fed also. Inflation is a concern (Globally) and growth seems quite strong. It makes sense. These markets have been complacent for some time. Although I will not reverse my positive carry positions, I am going to be more caustious and will not add for the time being.

FXTRADINGIDEAS@AOL.COM