Forex Investment and Currency Trading

Four stages to the dollar
There have been four stages to the strong recovery of the U.S. dollar in the last few weeks.

Signs of weakness in the European economy
Risk aversion – which resulted in an unwinding of short U.S. dollar positions
Counterparty risk – more recently when borrowers found it increasingly difficult to rollover U.S. dollar and [...]

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1 – 3 Month Outlook: MXN volatility here to stay
MXN has not escaped the current broad-based flight from EM risk, USD/MXN spiking 15%+ since early-Aug. With U.S. (and global) recession risks rising and the view is that the risk reduction / de-leveraging cycle will last another 3-6 months, the MXN will remain hostage to external [...]

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Some rumors that Mex Central Bank was intervening in FX spot  (high trade 14.32) but not confirmed at all & rather traders here see USDMXN spot (while horribly illiquid itself) as trading in sync w/USDBRL where Central Bank notably did intervene to sell U.S. Dollar in FX spot market. Had only taken few moments earlier this morning for Brazil [...]

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