A few quick observations
Just back from a few days at the beach ans I see a Little action out of Latin America today. First, strong talk of larger then expected interest rate rises in Brazil. Surveys are showing a rise to 13.5% by year end. This is in line with what I have been thinking for some time. Inflation in Brazil (as just about everywhere) is a very big concern.
``Investors see rate and inflation forecasts going up and they adjust their bets on the futures market as well,'' said Rodrigo Nassar, who oversees trading at Hencorp Commcor, a brokerage in Sao Paulo.
Inflation estimates rose from 5.12% to 5.24% in last weeks survey. READ MORE
In Argentina, all that looked Rosy last week looks pretty bad this week.
Argentina's government canceled a meeting with farmers scheduled for today to discuss a new export-tax system after producers threatened new protests.
This is bad news for all "Yield Monkey's" like myself. Although the currency doesn't seem to have reacted yet I think that if the situation is not addressed quickly the currency will weaken in a substantial way. I am currently short dollars and will be watching the situtaion closely. To READ MORE
Good Luck and Good Currency Trading
Labels: Markets
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