Forex Investment and Currency Trading

Currencies
China: News stories that one-year NDFs imply a depreciation of the renminbi versus the dollar – but the issue is whether you use the fixing rate or the closing spot rate. Today’s closing rate is 0.42% weaker than the fixing rate, the widest spread since the new exchange rate regime came into effect. Of course, [...]

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Emerging financial markets frequently track swings in advanced economy stocks. However, the close relationship between Emerging Market (EM) currencies and the S&P 500 broke in October 2007 with virtually no sign of repair since.
In 2H 2008, emerging market currency strategies will likely benefit from adhering to two main tenets
1) pursuit of relative value and 2) [...]

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The USD gained a stunning 5.3% versus the Colombian peso (COP) last Thursday, largely on the heels of remarks by President Uribe that the government is working to stem the gains in the COP and create a more ‘competitive’ peso. The movement of the currency reflects more than Presidential rhetoric and the drop in the [...]

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