Wednesday, July 02, 2008

Yield making a comeback.......well maybe

Today was another very interesting day. In previous session we have seen Colombia and Chile move aggresivly weaker only to close the day recovering from its weakest level's. Today Mexico and Brazil took their turn. We ended up closing with the currency slightly off its weakest levels, and i think with a long holiday weekend coming up that yield is going to come into play and we will see stable to stronger levels for Latin American Currencies.

A few other thoughts....

Very quietly we have seen sterling move back up to 2.00. The Euro is up near 1.5800 (in front of a widely expected rate increase on Thursday) and Aud and Nzd are once again flirting with stronger levels. What does this all mean......Yield ! In quiet markets yield rules and although these have not been quiet, I sense a few quiet sessions are in the offering and I look for these high yielding currencies to strengthen further.

It looks like the Farmers strike in Argentina, although not settled, can be move toward a more permenant closure if the taxes on Farmers can at the very least be altered. The currency has strengthened over recent sessions as trying to fund a short position is very expensive. Here is an article from BLOOMBERG which details what all sides are looking for.

Not much else except to let you know that my Son's baseball team lost tonight 3-1. Their record now is 2-1. My son played very well, went 1-2 with a great diving catch in left.

Good Luck to all and Good Currency Trading.



Post a Comment

Subscribe to Post Comments [Atom]

<< Home