Wednesday, September 03, 2008


A follow up to yesterdays post,

Latin American currencies were under pressure throughout the session yesterday with Colombia leading the charge trading up to 1990 against the dollar.

I took this opportunity to establish the position that I talked about, Selling Usd/Cop (1979) against buying Usd/Clp (517.75), both for value 1month forward.

In other news Argentine president Cristina Fernandez de Kirchner came out and announced that Argentina would repay $6.7 billion in debt to the Paris club.

Argentina will repay its $6.7 billion of defaulted debt with the Paris Club group of creditors, seeking to ease companies' access to financing as growth in South America's second-biggest economy slows.

President Cristina Fernandez de Kirchner said she had signed a decree allowing the use of the central bank's $47.1 billion in international reserves to pay the Paris Club.

``This is an important step of state policy, which is to cut our debt,'' Fernandez said at the presidential palace in Buenos Aires. ``This payment puts companies in a pole position, which they haven't had before this decision, and reaffirms Argentina's willingness to pay its international commitments.''

This announcement was meant to ease the markets concern but little trading occurred with the more aggressive side being buyers of dollars.
Otherwise I think the U.S. markets are in a wait and see approach until Friday when the Employment numbers are announced.

Good Luck and Good Currency Trading.

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