Thursday, September 04, 2008


Latin American currencies continued under pressure today, making my long Cop/Clp position look a bit sick. It is a combination of risk aversion and a strong interest in the market to buy dollars.

Colombia. The spot traded and settled above 2000 for the first time January 2008. In Brazil stocks traded lower for the third consecutive month in sympathy with commodity prices.

Foreign investors pulled money out of Brazil's stock market for a third straight month in August, spurred by the steepest plunge in commodities in at least five decades.

The Bovespa stock exchange recorded a net loss of 2.25 billion reais ($1.36 billion) last month as investors from abroad sold 36.157 billion reais of stocks in August and bought 33.906 billion, the exchange said on its Web Site.

Also JBS SA, the worlds largest Beef producer fell to a 6mth low, on the back of a possible down grade by Moody’s.


Dollar Korea moved higher once again overnight in spite of the BOK reportedly in selling 4-5 billion dollars. The BI (Indonesia’s CB) was also in last night reportedly selling 200 million dollars (it is a much smaller market.
So I am wrong with my Cop/Clp and my Jpy/Krw, but I have not cut either position yet. If I was trading my own money from home I would most certainly be out. But with the strength of a large bank behind me and other positions that help offset these positions I get the ability to run them a little longer (I promise if these positions come back into the money not to say “I told you so”).

Good Luck and Good Currency Trading.



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