Friday, October 24, 2008

Latin America

Well today started like yesterday a meltdown. But some serious intervention prevented a disaster from occurring.

Brazil opened at 2.5000 after ended the previous day at 2.2640. The market quickly traded to limit up 2.5305 before a serious intervention occurred in the market. Usd/Brl actually touched limit down at 2.2450 which in itself it quite amazing. Rates also came off very high levels as the central bank intervened in the forwards as well as the spot.

Mexico went through very similar movements before ending the day at the lows. Short dates have become quite managablewhich has enabled the curve to steepen with the short end doing all the work.

The "Big Dollar". I am becomeing convinced that the Euro is in for a relief rally heading into the weekend. I have cut my short and remain square. I will get small long tomorrow morning BUT will go home square for the weekemd.

Good Luck and Good Currency Trading.


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