Tuesday, July 15, 2008

Markets are nervous


The markets today have me a little scared. I cannot put a finger on it , but rather it is a “gut instinct”. I have cut down a as much risk as possible as when I get like this I try to take the more conservative approach.

Currently I have on:

Long Usd/Ars. Yes this is quite strange for me but the reason I have gone long is that I sell dollars over the next two weeks from fixings. There was an offer today and I took advantage of it. I feel better having covered this short.

Short Usd/Cop. I fix out of this next week and see no reason to change.

Long Forward Mexico and Brazil, looking for interest rate differentials to widen out in these currency pairs.

The dollar should continue to show weakness, why buy it? Is there really any reason ??


Good Luck and Good Currency Trading

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2 Comments:

OpenID thelonelytrader said...

I was just looking at BRL -- and thinking that it's about topped out...so would the spreads be worth it, in your view, for a carry with the possibility that volatility will become a factor in the near term?

10:45 PM  
Blogger Banker said...

I Usd/Brl only knows how to go one way...down. I try to trade this currency pair from the short side , but recently have been trying to stay away. I have little confidence in owning EM right now (this could change by 5.00 pm today).

I will do a more detailed update on EM tonight.

Banker

7:23 AM  

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